Nvidia's Landmark $100 Billion OpenAI Deal Hits Roadblocks Amid Strategic Rethink

A proposed strategic investment by Nvidia into OpenAI, once valued at up to $100 billion, has encountered significant hurdles, forcing a reevaluation of one of the most anticipated partnerships in the artificial intelligence sector.

Citing sources familiar with internal discussions, The Wall Street Journal reports that concerns within Nvidia have prompted both companies to reconsider the future structure and scale of their collaboration. The original vision, outlined last September, would have seen Nvidia become a cornerstone supplier of advanced chips and data center infrastructure for OpenAI, fueling the latter's costly race to develop next-generation AI models.

Instead of the colossal initial sum, ongoing talks now center on a potential equity investment in the tens of billions of dollars as part of OpenAI's latest funding round. Nvidia CEO Jensen Huang has characterized the original $100 billion figure as a non-binding and unfinalized commitment. Industry analysts note that Huang has also privately expressed reservations about OpenAI's business direction and the intensifying competition from rivals like Google and Anthropic, which could alter the strategic calculus for the chipmaking giant.

The stalled deal underscores the high-stakes and volatile nature of AI infrastructure alliances. While Nvidia reconsiders, other tech heavyweights are circling. Amazon is reportedly in talks for an investment that could reach $50 billion, and Japan's SoftBank Group is also pursuing closer ties with the ChatGPT creator. OpenAI continues its push to raise up to $100 billion in funding, a move that would catapult its valuation to an estimated $830 billion, even as it burns through capital to expand its global data center footprint.

The original partnership framework involved deploying ten gigawatts of Nvidia's cutting-edge systems, with operations slated to begin in late 2026 using its upcoming Vera Rubin platform. This would have positioned Nvidia as OpenAI's primary provider for computing and networking solutions, working alongside existing partners like Microsoft and Oracle.

Industry Voices React

Dr. Anya Sharma, Tech Strategist at Berkeley Research Group: "This isn't just a deal falling through; it's a signal. Nvidia is likely assessing concentration risk. Being so deeply tied to one client, even one as prominent as OpenAI, in a market where new competitors emerge weekly, requires immense caution. They're protecting their ecosystem."

Michael Torres, Venture Partner at Sierra Ventures: "The scale was always eye-watering. A recalibration to a multi-billion equity stake makes more strategic sense. It gives Nvidia a financial upside in OpenAI's success without over-committing its own production capacity and capital in a single, monolithic deal."

Lisa Chen, Editor-in-Chief, The Circuit Report: "This smells like cold feet from Jensen Huang. He built the picks and shovels for this gold rush, and now he's worried about who's digging? OpenAI is the defining client of this era. To hesitate now, while Amazon and SoftBank jump in, could be a historic misstep. It reeks of corporate indecision at the worst possible time."

Professor David Finch, AI Ethics Lab, MIT: "Beyond the finance, this pause is a moment to reflect on the infrastructure consolidation of AI. Having a single hardware vendor wield such influence over a leading AI lab's roadmap raises profound questions about innovation diversity and market health. A more distributed supplier landscape might be healthier in the long run."

This analysis is based on a report originally published by Verdict. The information herein is for general informational purposes only and is not intended as professional advice.