Nvidia is preparing to finalize a deal to invest approximately $30 billion in OpenAI, which owns the popular ChatGPT service, according to a report by the Financial Times. This investment marks a significant reduction from earlier talks of a wider partnership valued at $100 billion. Sources suggest that the deal might be completed over the weekend, reflecting Nvidia's strategic shift in its relationship with the AI firm.

This new investment is part of OpenAI's strategy to raise around $100 billion in additional funding, which is expected to elevate the company's market valuation to approximately $730 billion. Although Nvidia will acquire shares in OpenAI as part of this investment, both companies will not be moving forward with the previously announced partnership plans from September. This shift signals a reevaluation of both companies' goals and potential collaborations in an increasingly competitive AI landscape.

The announcement has raised questions regarding the profitability opportunities surrounding this investment and the future of the partnership that was once on the table. According to the Guardian, Nvidia's investment could involve purchasing significant hardware from the company, indicating a deeper integration of Nvidia's capabilities into OpenAI’s operations, albeit without the broader partnership framework initially considered.