Nvidia’s massive investment in OpenAI appears to be in limbo after its CEO, Jensen Huang, expressed concerns about the ChatGPT maker’s business approach.
In September, reports emerged that Nvidia had made an up to $100 billion commitment to OpenAI along with roughly 10 gigawatts of new capacity of the chipmaker’s systems, enough to power the needs of over eight million US households.
At the time, Huang said ChatGPT is “the single most revolutionary AI project in history.” And in November, Huang said that OpenAI and Anthropic are the “fastest-growing companies in the history of humanity.”
Citing people with knowledge of the matter, the Wall Street Journal reports that negotiations never advanced beyond the early stages, despite initial expectations that the deal would be finalized within weeks. Recent talks have shifted away from the original framework and now include the possibility of an equity investment of tens of billions of dollars as part of OpenAI’s current fundraising round.
Behind the scenes, Huang has emphasized that the original $100 billion commitment was nonbinding and unfinished, according to people familiar with the matter. He has also privately raised concerns about OpenAI’s business discipline and the intensifying competition it faces from rivals such as Google and Anthropic.
Says an OpenAI spokesperson,
“Our teams are actively working through details of our partnership. Nvidia technology has underpinned our breakthroughs from the start, powers our systems today, and will remain central as we scale what comes next.”
An Nvidia spokesperson said the company has been OpenAI’s preferred partner for the past decade and looks forward to continuing the relationship.
OpenAI has been in a companywide “Code Red” since December, after Google’s Gemini surpassed the firm’s models on benchmark tests. The private AI firm has also grabbed headlines as of late, following concerns about its spending commitments dwarfing its revenue.
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