Daijiworld Media Network - San Francisco

San Francisco, Jan 31: Nvidia’s plan to invest up to $100 billion in OpenAI has reportedly stalled after concerns were raised within the chipmaking giant over the proposed deal, according to a Wall Street Journal report.

The investment, announced in September, was expected to provide OpenAI with substantial funding and access to Nvidia’s advanced chips, critical for training and running next-generation artificial intelligence models amid intensifying competition in the sector.

However, citing people familiar with the matter, the report said both companies are now re-evaluating the future of their partnership. Recent discussions are said to revolve around a possible equity investment worth tens of billions of dollars as part of OpenAI’s ongoing funding round, rather than the originally indicated amount.

Nvidia CEO Jensen Huang has privately told industry associates that the proposed $100 billion deal was non-binding and never finalised. He has also expressed concerns over OpenAI’s business discipline and the growing competition it faces from rivals such as Alphabet-owned Google and AI startup Anthropic, the report added.

Responding to the developments, an Nvidia spokesperson said the company has been OpenAI’s preferred partner for the past decade and looks forward to continuing the collaboration. OpenAI did not immediately respond to a request for comment.

Meanwhile, major technology firms and investors, including SoftBank Group, are racing to strengthen ties with OpenAI, which is making heavy investments in data centres. Amazon is reportedly in talks to invest up to $50 billion in the company. OpenAI is seeking to raise as much as $100 billion in fresh funding, with an estimated valuation of around $830 billion.