Nvidia’s plan to invest up to $100 billion in OpenAI is currently stalled after internal concerns arose within the chip manufacturing company, according to the Wall Street Journal.
The partnership agreement was announced in September last year at Nvidia’s headquarters in Santa Clara, including a memorandum of understanding for Nvidia to build at least 10 gigawatts of computing capacity for OpenAI. Nvidia also plans to fund infrastructure costs, while OpenAI will lease the chips for operation. However, although OpenAI had hoped negotiations would be completed soon, discussions have not yet moved beyond the initial stage.
Both parties are now reconsidering the form of cooperation, with recent exchanges focusing on the possibility of large-scale equity investment in OpenAI’s current funding round. Nvidia CEO Jensen Huang emphasized that the initial $100 billion agreement is non-binding and expressed concerns about OpenAI’s business strategy as well as competitive pressures from Google and Anthropic. Both companies stated that discussions are still ongoing.
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Nvidia's $100 billion investment plan in OpenAI has been halted
Nvidia’s plan to invest up to $100 billion in OpenAI is currently stalled after internal concerns arose within the chip manufacturing company, according to the Wall Street Journal.
The partnership agreement was announced in September last year at Nvidia’s headquarters in Santa Clara, including a memorandum of understanding for Nvidia to build at least 10 gigawatts of computing capacity for OpenAI. Nvidia also plans to fund infrastructure costs, while OpenAI will lease the chips for operation. However, although OpenAI had hoped negotiations would be completed soon, discussions have not yet moved beyond the initial stage.
Both parties are now reconsidering the form of cooperation, with recent exchanges focusing on the possibility of large-scale equity investment in OpenAI’s current funding round. Nvidia CEO Jensen Huang emphasized that the initial $100 billion agreement is non-binding and expressed concerns about OpenAI’s business strategy as well as competitive pressures from Google and Anthropic. Both companies stated that discussions are still ongoing.