A high-profile partnership in the AI industry is now under review. Talks between Nvidia and OpenAI over a possible $100 billion investment have stalled, raising questions about the future of their planned collaboration.
People familiar with the matter said internal concerns at Nvidia slowed the discussions. The two companies had announced in September that they signed a letter of intent for a strategic deal. The proposed funding was aimed at building new data centers and AI infrastructure using Nvidia hardware. The target was to create about 10 gigawatts of computing power, equal to the peak electricity demand of New York City.
OpenAI is the maker of the ChatGPT chatbot, while Nvidia leads the global market for AI processors used to train such systems. Despite the pause in talks, Nvidia said in a statement, “We have been OpenAI’s preferred partner for the last 10 years. We look forward to continuing to work together.” The company did not comment on the status of negotiations. OpenAI has not issued a response.
Sources said both sides are now rethinking the structure of the partnership. One option under consideration is for Nvidia to invest tens of billions of dollars as part of OpenAI’s current funding round, instead of the full $100 billion.
OpenAI is seeking to raise up to $100 billion in this round. Amazon.com Inc. is reportedly in talks to invest as much as $50 billion and expand its deal to supply computing power to OpenAI.
Nvidia has also continued investing in other AI players. Earlier this week, it announced plans to add $2 billion to its stake in CoreWeave Inc., a cloud services provider that also buys Nvidia chips.
Such deals, where companies invest in firms that later become their customers, have drawn criticism. Some analysts worry this model could weaken the long-term strength of the AI boom. Nvidia Chief Executive Officer Jensen Huang dismissed those concerns. After the CoreWeave deal, he said these investments make up only a small share of the money companies need to raise. “So the idea that it is circular is — it’s ridiculous,” he said.
For now, the future of the Nvidia–OpenAI mega deal remains uncertain as both sides reassess their next steps.
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