February 20, 2026 – Nvidia is closing in on a $30 billion investment in OpenAI. That’s a steep discount from the $100 billion the chipmaker pledged just a year ago.

The deal is nearly done, according to the Financial Times. It could close as early as this weekend.

A Smaller Bet, But Still a Big Number

The $30 billion forms part of a massive $100 billion funding round. After closing, OpenAI’s valuation is expected to reach $830 billion.

That makes OpenAI one of the most valuable private companies on earth. But the gap between the original pledge and the final sum tells a deeper story.

Why the Reduced Commitment Matters

NVIDIA’s pullback from its $100 billion promise rattled markets last month. Tech and AI stocks sold off sharply. Investors grew nervous about the sector’s long-term trajectory.

The AI industry burns cash at a staggering rate. Every model trained, every query answered – it all costs money. A lot of it.

NVIDIA CEO Jensen Huang and OpenAI’s Sam Altman both moved quickly to downplay any tension. However, Wall Street was taken aback by the lower figure.

A Circular Relationship

There is another wrinkle worth watching. OpenAI plans to reinvest a large portion of its new capital into Nvidia hardware. Critics have flagged this as a form of circular financing.

In simple terms: Nvidia invests in OpenAI. OpenAI buys Nvidia chips. NVIDIA’s revenues rise. The loop closes, but questions about sustainability remain.

Who Else Is Involved?

OpenAI is not relying solely on Nvidia. The company is also in talks with:

SoftBank Group
Amazon
Microsoft
MGX – Abu Dhabi’s state-backed tech fund

An IPO is reportedly on the table for late 2026. OpenAI needs public markets to sustain its growth.

The Bottom Line

The $30 billion deal signals continued confidence in AI but also growing caution. Investors and analysts will be watching closely. The AI boom is real. So is the burn rate.