NVIDIA’s New LLM Puts Question Marks Over OpenAI’s Just-Acquired $157 Billion Valuation

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NVIDIA appears determined to corner every segment of the emerging AI-led paradigm shift in its quest to become the go-to retailer of full-stack AI solutions. As a verifiable demonstration of this underlying strategy, look no further than the GPU manufacturer's recent release of a dedicated, open-source Large Language Model (LLM), dubbed the NVLM-D 1.0. What's more, given the model's near-parity with comparable proprietary offerings such as the GPT-4o, investors must ask the question: is OpenAI's new $157 billion valuation justified?

OpenAI's Cash-Rich Coffers

To wit, OpenAI has now announced that it was able to raise a whopping $6.6 billion in a new funding round that included the likes of SoftBank, Microsoft, and even NVIDIA. Critically, the new funding has now bestowed a $157 billion valuation on the AI-focused enterprise.

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However, in a move that is almost guaranteed to attract antitrust scrutiny, OpenAI has now bound its investors in an exclusive funding relationship that prevents them from plowing cash into rivals such as Anthropic and Elon Musk's xAI.

OpenAI's weekly users have now jumped to 200 million, and the firm expects its revenue to triple in 2025 to a whopping $11.6 billion. This means that the firm is currently valued at 13.53x its 2025 revenue, which is not exactly a bargain.

NVIDIA's NVLM-D 1.0 LLM

Even as OpenAI is attracting significant funding, its competition is growing by leaps and bounds. We reported last week that NVIDIA was gearing up to release a new LLM that leverages its Blackwell architecture's 50x generational uplift in inference capability.

Well, NVIDIA officially unveiled its NVLM-D 1.0 LLM yesterday. The model is based on 72 billion parameters and offers near-parity in performance when compared with not only