[Digital Today reporter Chi-gyu Hwang] News has emerged that Nvidia’s plan to invest up to $100 billion in OpenAI has hit a roadblock. The Wall Street Journal (WSJ) reported on Thursday, citing sources familiar with the matter, that questions were raised inside Nvidia about the deal.
The two companies signed a sweeping memorandum of understanding at Nvidia headquarters in September last year. The core of the partnership was that Nvidia could invest up to $100 billion to support OpenAI’s ability to pay for Nvidia building at least 10 gigawatts of computing power for OpenAI.
As part of the cooperation, OpenAI agreed to lease AI chips from Nvidia. OpenAI expected a detailed contract to be completed within a few weeks at the time, but talks have not moved beyond the early stage, the WSJ reported, citing some sources.
Some sources said the two sides are now reviewing the future of the partnership. The WSJ reported that ongoing discussions also include Nvidia making an equity investment in OpenAI worth tens of billions of dollars as part of an OpenAI investment round.
Jensen Huang (젠슨 황), Nvidia’s CEO, has privately told industry contacts in recent months that the $100 billion investment previously disclosed was not binding and had not been finalised, the report said.
He has also criticised OpenAI’s business style as lacking structure and privately voiced concerns that OpenAI faces competition from companies such as Google and Anthropic, the WSJ reported.