Plans by Nvidia to invest up to $100 billion in OpenAI have stalled amid internal concerns at the chipmaker about the scale and structure of the proposed deal. The reassessment follows the September announcement outlining a potential investment to support the training and deployment of OpenAI’s latest artificial intelligence models.
However, people familiar with the matter indicated that the original proposal was non-binding and never finalised. As a result, discussions have shifted toward a possible equity investment of tens of billions of dollars as part of OpenAI’s current funding round, rather than the initially signalled commitment.
Strategic concerns and competitive pressures
Moreover, Nvidia’s chief executive has privately highlighted reservations about OpenAI’s business discipline and the increasingly competitive environment. In particular, competition from other AI developers has intensified, therefore raising questions about long-term returns and strategic alignment.
“We have been OpenAI’s preferred partner for the last 10 years. We look forward to continuing to work together,” an Nvidia spokesperson said in an emailed statement.
OpenAI did not respond to requests for comment.
Broader funding landscape
Meanwhile, interest in OpenAI remains strong across the technology sector. Big technology companies and global investors continue to pursue closer partnerships, given the startup’s heavy spending on data centres and infrastructure. Additionally, discussions with other potential investors have included commitments totalling tens of billions of dollars.
OpenAI is seeking to raise up to $100 billion in fresh funding, implying a valuation of about $830 billion. Consequently, the outcome of ongoing negotiations is likely to shape both the company’s capital structure and the competitive dynamics of the global AI industry.
