Saturday Nvidia CEO Jensen Huang said they still planned a "huge" investment in OpenAI, according to CNBC.
Friday the Wall Street Journal had reported that Nvidia's plan to invest up to $100 billion in OpenAI "has stalled after some inside the chip giant expressed doubts about the deal, people familiar with the matter said..."
[T]he talks haven't progressed beyond the early stages, some of the people said. Now, the two sides are rethinking the future of their partnership, some of the people said. The latest discussions, they said, include an equity investment of tens of billions of dollars as part of OpenAI's current funding round. Nvidia CEO Jensen Huang has privately emphasized to industry associates in recent months that the original $100 billion agreement was nonbinding and not finalized, people familiar with the matter said. He has also privately criticized what he has described as a lack of discipline in OpenAI's business approach and expressed concern about the competition it faces from the likes of Google and Anthropic, some of the people said...
OpenAI is laying the foundation to go public by the end of 2026, and has spent much of the past year racing to secure large amounts of computing capacity to help power OpenAI's future products and growth. The stalled Nvidia pact is a blow to this effort and shows how Chief Executive Sam Altman's penchant for announcing flashy big-ticket deals carries the potential to backfire if the terms have yet to be finalized. In a joint announcement unveiling the September deal with Altman and OpenAI President Greg Brockman, Huang called the deal "the largest computing project in history...." OpenAI went on to sign a string of other agreements with chip and cloud companies that helped fuel a global stock market rally.
But investors have since grown jittery about the startup's ability to pay for these deals, leading to a sell-off in some tech stocks tied to OpenAI. Altman has said that the deals put the startup on the hook for $1.4 trillion in computing commitments — more than 100 times the revenue it was on pace to generate last year. OpenAI executives say the total commitments are lower when you account for overlap in some of the deals, and that the agreements will take place over a long period of time.... Huang has indicated to associates that he still believes it's crucially important to provide OpenAI with financial support in one form or another, in part because OpenAI is one of the chip designer's largest customers, people familiar with the matter said. If OpenAI were to fall behind other AI developers, it could dent Nvidia's sales.
"Speaking to reporters in Taipei, Huang said it was 'nonsense' to say he was unhappy with OpenAI," CNBC reported Saturday:
"We are going to make a huge investment in OpenAI. I believe in OpenAI, the work that they do is incredible, they are one of the most consequential companies of our time and I really love working with Sam," he said, referring to OpenAI CEO Sam Altman. "Sam is closing the round (of investment) and we will absolutely be involved," Huang added. "We will invest a great deal of money, probably the largest investment we've ever made."
Asked whether it would be over $100 billion, he said: "No, no, nothing like that."
Elsewhere the Journal has reported that Amazon is in talks to invest up to $50 billion in OpenAI.
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