SAN FRANCISCO, Feb 4, 2026, 09:49 PST
- Nvidia is close to finalizing a roughly $20 billion investment in OpenAI, according to a source
- OpenAI aims to raise as much as $100 billion, targeting a valuation near $830 billion
- Oracle’s fundraising and expansion moves hinge heavily on OpenAI’s demand for data centers
Nvidia is close to finalizing a roughly $20 billion investment in OpenAI during the AI company’s latest funding round, a source familiar with the situation said. The agreement isn’t set in stone yet, even as OpenAI has looked at alternatives to some of Nvidia’s latest chips. That’s despite CEO Sam Altman describing Nvidia’s products as “the best AI chips in the world.” (Reuters)
The proposed investment’s scale is significant, linking two major players in the AI surge just as expenses rise and alliances morph into strategic edges. Nvidia CEO Jensen Huang told CNBC they’re open to backing OpenAI’s next funding round and eventual IPO, stating bluntly, “We will invest in the next round.” (Reuters)
Oracle’s stock climbed Monday following analyst comments that the company’s plan to raise up to $50 billion in 2026 has calmed concerns over funding its data-center expansion linked to OpenAI. Reuters reported that Oracle sealed a deal with the startup valued at roughly $300 billion. AJ Bell investment director Russ Mould noted the market sees Oracle as “heavily tied to OpenAI.” (Reuters)
OpenAI’s funding round reflects a wider rush by Big Tech and financial players aiming to strengthen ties with the startup. Some see early access to OpenAI’s models as a way to gain cloud market share, enterprise deals, and developer loyalty. Meanwhile, OpenAI is focused on locking in enough computing power to meet rising demand and future model training needs.
Oracle announced on Feb. 1 it plans to raise between $45 billion and $50 billion in gross proceeds this year, dividing the funds between equity and debt to maintain an investment-grade balance sheet. The company outlined an at-the-market equity program capped at $20 billion and said it expects to issue a single tranche of senior unsecured bonds early in 2026, with no further bond sales planned for this year. (Oracle)
Investors are eyeing Oracle’s credit signals as a gauge for how much the AI infrastructure expansion can run before the market reacts. Morgan Stanley Wealth Management CIO Lisa Shalett told Fortune in October, “Every morning the opening screen on my Bloomberg is what’s going on with CDS spreads on Oracle debt,” referring to credit-default swaps — contracts that act like insurance against default. (Fortune)
Tensions in the chip market are shaking up suppliers. Cerebras Systems announced Wednesday it secured $1 billion in funding, valuing the company at $23 billion, as OpenAI and others seek to broaden their chip sources. Reuters reported OpenAI is exploring alternatives for inference chips—the hardware powering real-time model outputs. The news outlet also revealed Nvidia has contacted firms specializing in SRAM-heavy chips, including Cerebras and Groq, about potential buyouts. Shortly after, Cerebras inked a commercial deal with OpenAI. (Reuters)
But there’s a clear snag: the major deals aren’t sealed yet. Nvidia and OpenAI’s discussions might shift, OpenAI still needs to secure a massive funding round, and Oracle’s financing hinges on customers committing long-term while construction schedules stay on track.
For Nvidia, holding a significant stake in OpenAI might secure steady demand for its data-center chips, even as AI developers explore alternatives for some workloads. Oracle faces a more straightforward, tougher question: can OpenAI’s contracts and cash flow cover the real costs—concrete, steel, and power—needed to build new data centers?
Markets eye OpenAI’s funding—will it close on the rumored terms? Nvidia has to back its buzz with actual signed deals. Meanwhile, Oracle faces the challenge of pulling off its equity-and-debt strategy without rattling investors again.
