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Report: NVIDIA's $100B OpenAI Investment Stalls
Nvidia CEO Jensen Huang says the $100 billion investment in OpenAI was never finalized and the company will make a substantial but smaller commitment in the ongoing funding round.
- 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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According to insiders, OpenAI is looking for alternatives to the chips of the market leader Nvidia in order to increase the computing speed for complex AI requests.
Coverage Details
Total News Sources145
Leaning Left12Leaning Right23Center23Last UpdatedBias Distribution40% Center, 39% Right
Bias Distribution
- 40% of the sources are Center, 39% of the sources lean Right
40% Center
L 21%
C 40%
R 39%
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