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Nvidia CEO Hints at End of OpenAI, Anthropic Investments Ahead of IPOs

  • 2 hours ago
  • 2 min read

Nvidia Chief Executive Officer Jensen Huang indicated the company’s recent investments in OpenAI and Anthropic might be its final ones, as both artificial intelligence organisations prepare for potential public offerings this year.


NVIDIA logo in green and black with blurred graphics cards in the dark background. White "NVIDIA" text at the bottom.
Credit: UNSPLASH

Huang stated that the opportunity for a USD 100 billion investment in OpenAI is likely no longer available, with the creator of ChatGPT expected to go public later this year. Nvidia had instead finalised a USD 30 billion investment in OpenAI, following the abandonment of a USD 100 billion deal.


Chief Executive Officer Huang remarked that this could be the final chance for Nvidia to "invest in a consequential company like this." OpenAI is reportedly preparing for an initial public offering that could value the organisation at up to USD 1 trillion.


Nvidia’s USD 10 billion investment in Anthropic will probably also be its last, Huang added. The startup is reportedly considering going public this year, though it has not yet finalised an initial public offering decision.


Anthropic is currently embroiled in a dispute with the Pentagon. Huang made his comments at the Morgan Stanley Technology, Media and Telecom conference.


A prior report indicated Nvidia and OpenAI had abandoned their USD 100 billion deal. This abandonment occurred amidst doubts about the health of the artificial intelligence sector. Separately, some analysts had raised concerns about the circular arrangement of other investments.


Analysts raised concerns regarding the circular arrangement, where a significant investment in Anthropic would establish Nvidia as a major investor in one of its primary customers. The funds poured into the startup were also likely to be spent on Nvidia’s own artificial intelligence processors.

  • Nvidia Chief Executive Officer Jensen Huang suggested current investments in OpenAI and Anthropic may be the company’s last.

  • Both OpenAI and Anthropic are reportedly preparing for initial public offerings this year.

  • Nvidia has finalised a USD 30 billion investment in OpenAI and a USD 10 billion investment in Anthropic.


Source: REUTERS

 
 
 

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