Dec 2 (Reuters) – Nvidia’s agreement with ChatGPT parent OpenAI to invest up to $100 billion in the startup is still not finalized, the chipmaker’s chief financial officer Colette Kress said on Tuesday at the UBS Global Technology and AI Conference in Arizona.
Kress’ comments add to intensifying discussion around a partnership that ties two of the most significant players in the artificial intelligence race and is at the center of rising concerns around circular deals in the AI ecosystem.
The world’s most valuable company in September unveileda letter of intent to invest in OpenAI, under an agreement that would involve deploying at least 10 gigawatts of Nvidia systems for the startup, enough capacity to power more than 8 million U.S. homes.
“We still haven’t completed a definitive agreement, but we’re working with them,” Kress said, addressing questions about the framework of Nvidia’s agreement with OpenAI.
OpenAI, the startup at the heart of the generative AI boom that kicked off with the launch of ChatGPT in late 2022, is a major customer for Nvidia’s chips, alongside large cloud providers which make up a large portion of the chipmaker’s sales.
Nvidia CEO Jensen Huang has said the company has $500 billion in bookings for its advanced chips through 2026.
The chips Nvidia could provide to OpenAI after its agreement is finalized are not included in these bookings and would add to the number, Kress said on Tuesday.
“That half a trillion doesn’t include any of the work that we’re doing right now on the next part of the agreement with OpenAI,” she said.
Nvidia shares were up 2.6%.
Over the past year, Nvidia has struck a series of deals with AI startups and invested in firms that are also major customers, stoking Wall Street concerns about an AI bubble and so‑called circular deals.
Nvidia last month announced plans to commit up to $10 billion to OpenAI rival Anthropic. Kress said the Anthropic deal could also add to Nvidia’s $500 billion in chip bookings.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Tasim Zahid)
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