Nvidia CEO hints at end of investments in OpenAI, Anthropic


FILE PHOTO: The logo of NVIDIA as seen at its corporate headquarters in Santa Clara, California, in May of 2022. Courtesy NVIDIA/Handout via REUTERS/File Photo

March 4 (Reuters) - ⁠Nvidia CEO Jensen Huang said the latest investments in OpenAI ⁠and Anthropic might be the chipmaker's last in those companies, ‌as the AI companies prepare to go public this year.

The opportunity to invest $100 billion in OpenAI is probably not in the cards as the ChatGPT creator is ​set to go public later this year, Huang ⁠said at the Morgan ⁠Stanley Technology, Media and Telecom conference on Wednesday.

Nvidia and OpenAI had announced ⁠a $100 ‌billion deal in September last year.

Nvidia has instead finalized a $30 billion investment in OpenAI, which might be the last ⁠time it has the opportunity to "invest in a consequential ​company like this," ‌Huang said.

OpenAI is laying the groundwork for an IPO that ⁠could value the ​company at up to $1 trillion, Reuters exclusively reported last year.

Nvidia's $10 billion investment in Anthropic probably will be the last as well, Huang added. The ⁠startup is reportedly looking to go public ​this year.

Anthropic, which is embroiled in a dispute with the Pentagon, has said it has not finalized an IPO decision.

OpenAI and Anthropic did not ⁠immediately respond to Reuters requests for comment.

The Financial Times reported in February thatNvidia and OpenAI had abandoned their $100 billion deal amid doubts about the health of the AI sector. Some analysts had raised concerns ​about the circular arrangement, as the large ⁠investment in Anthropic would have made Nvidia a major investor in one ​of its biggest customers and the money ‌it would pour into the startup ​was likely to be spent on its own AI processors.

(Reporting by Juby Babu in Mexico City; Editing by Shinjini Ganguli)

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