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Report: NVIDIA's $100B OpenAI Investment Stalls
Nvidia is reconsidering its $100 billion commitment to OpenAI due to internal concerns over deal structure and market competition, with potential investment now in the tens of billions.
- On Friday, The Wall Street Journal reported Nvidia Corp.'s September letter of intent to invest $100 billion in OpenAI stalled after internal doubts emerged.
- Internal doubts at Nvidia emerged as Jensen Huang, Nvidia CEO, privately emphasized in recent months that the original $100 billion agreement with OpenAI was non-binding and insiders worried about deal size, terms, and circular deals.
- Huang told reporters in Taipei, `Sam is closing the round and we will absolutely be involved` while reports say recent talks focus on a smaller equity stake with Amazon.com Inc. and Microsoft Corp. also in discussions.
- Rethinking the partnership could reshape AI infrastructure and chip demand as OpenAI buys Nvidia AI processors and invests heavily in data centres.
- Investors warn that circular deals may inflate demand and raise sustainability concerns for the AI boom as Nvidia recently announced plans to put an additional $2 billion into CoreWeave Inc., and Huang's Saturday remarks in Taipei followed a suppliers' gathering dubbed the `trillion-dollar dinner`.
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The Wall Street Journal stated that people in Nvidia had expressed doubts about the agreement and that both parties were reconsidering their partnership.
·Paris, France
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The boss of Nvidia's American chip mastodon, Jensen Huang, confirmed Saturday in front of the press that a "colossal" investment in OpenAI was coming and swept away information that there would be internal doubts about the rapprochement with this flagship of the generative AI.
·Montreal, Canada
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ABC FOX Montana+14 Reposted by 14 other sources
Nvidia boss insists 'huge' investment in OpenAI on track
Nvidia chief executive Jensen Huang has insisted the US tech giant will make a "huge" investment in OpenAI and dismissed as "nonsense" reports that he is unhappy with the generative AI star.
·Missoula, United States
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Coverage Details
Total News Sources95
Leaning Left9Leaning Right16Center20Last UpdatedBias Distribution44% Center
Bias Distribution
- 44% of the sources are Center
44% Center
L 20%
C 44%
R 36%
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