Nvidia CEO Jensen Huang has the word ‘last’ for investments in OpenAI and Anthropic | – The Times of India
Nvidia CEO Jensen Huang has signalled that the chipmaker’s recent investments in both OpenAI and Anthropic are likely to be its final bets on either company. Recently, the US chipmaker announced $30 billion investment in ChatGPT-maker and in November, Nvidia announced a $10 billion investment.Speaking at the Morgan Stanley Technology, Media & Telecom Conference on Wednesday, Huang described Nvidia’s investment in OpenAI as something that “might be the last time” Nvidia invests in the AI startup. The reason comes down to one word: IPO. Huang suggested OpenAI may go public toward the end of this year.“The reason for that is because they’re going to go public,” Huang said simply, as per a report CNBC.He also poured cold water on the prospect of an even larger deal. Earlier speculation had centred on a potential $100 billion investment in OpenAI, a figure that had been floated as part of a sweeping infrastructure agreement between the two companies announced in September. However, Huang said that level of commitment is probably “not in the cards.”
What Nvidia CEO Jensen Huang previously said
Earlier this year, a report in the Wall Street Journal said that Huang told industry associates that the original $100 billion agreement was non-binding and was never finalised – the headlining number was never a commitment. Reports have also claimed that Huang expressed reservations about OpenAI, criticising what he described as a lack of discipline in the company’s business approach.With $30 billion deal, the infrastructure commitment has also been reconfigured – OpenAl will gain access to 3 gigawatts of dedicated inference capacity and 2 gigawatts of training capacity on Nvidia’s next-generation Vera Rubin systems, building on existing Hopper and Blackwell systems.“We are also expanding our long standing collaboration with NVIDIA, including the use of 3GW of dedicated inference capacity and 2 GW of training on Vera Rubin systems. This builds on Hopper and Blackwell systems already in operation across Microsoft, OCI, and CoreWeave. Together, this capital and infrastructure expansion strengthens our ability to train and deploy frontier models at global scale,” the ChatGPT-maker said.
The Anthropic investment may also be the ‘last’
Huang also addressed Nvidia’s position on Anthropic, OpenAI’s chief rival. He said Nvidia’s $10 billion investment in Anthropic — announced alongside Microsoft in November — would also likely be its last in that company.Nvidia has been one of the winners of the AI boom, supplying the graphics processing units (GPUs) that AI companies depend on to train models and handle large computing workloads. Its chips sit at the heart of virtually every major AI system being built today.