An ambitious plan by Nvidia Corp (NASDAQ:NVDA) to invest as much as $100 billion in OpenAI has reportedly stalled as internal doubts emerge.
Nvidia’s proposed investment in OpenAI has hit a roadblock after executives inside the chip giant raised concerns about the scope and structure of the deal, reported Wall Street Journal on Friday.
The semiconductor leader had announced in September plans to invest up to $100 billion in ChatGPT-maker, a move that would have strengthened ties between the companies while helping OpenAI fund massive data center expansion and secure access to advanced AI chips.
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However, people familiar with the matter told the publication that Nvidia and OpenAI are now reassessing the future of their partnership.
Current discussions reportedly center on a significantly smaller equity investment — potentially in the tens of billions of dollars — as part of OpenAI’s ongoing fundraising round.
An Nvidia spokesperson told Benzinga in an emailed statement that the company has been “OpenAI’s preferred partner for the last 10 years. We look forward to continuing to work together.”
OpenAI did not immediately respond to Benzinga’s request for comment.
Nvidia CEO Jensen Huang has privately said that the original $100 billion proposal was nonbinding and never finalized, the report said.
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Huang has also expressed concerns about what he views as a lack of financial discipline at OpenAI, particularly as the company spends aggressively to scale infrastructure.
The Nvidia chief has additionally pointed to growing competition facing OpenAI from rivals such as Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google and Amazon.com, Inc. (NASDAQ:AMZN)-backed Anthropic.
The talks come as OpenAI reportedly seeks to raise up to $100 billion at a valuation of roughly $830 billion.
Major technology firms and investors, including SoftBank Group (OTC:SFTBF) (OTC:SFTBY), are vying to deepen ties with the AI startup, viewing strategic partnerships as a competitive edge in the global AI race.
Amazon is also in discussions to invest tens of billions of dollars in OpenAI, with the figure potentially reaching $50 billion, Reuters reported Thursday.
