Nvidia’s plan to invest up to $100 billion in OpenAI has stalled, WSJ reports
Jan 30 (Reuters) – Nvidia plans to invest up to $100 billion OpenAI helping them train and run the latest versions artificial intelligence The models stalled after some inside the chip giant expressed doubts about the deal, the Wall Street Journal reported Friday.
The chipmaker announced in September that it plans to invest up to $100 billion in OpenAI in a deal that will give the ChatGPT maker cash and the access it needs to buy advanced chips that are key to maintaining its edge in an increasingly competitive environment.
The companies are rethinking the future of their partnerships, and recent discussions include an equity investment of tens of billions of dollars as part of OpenAI’s current funding round, The Journal said, citing people familiar with the matter.
The report stated that Nvidia CEO Jensen Huang had privately emphasized to industry partners in recent months that the original $100 billion deal was not binding and had not been finalized.
The WSJ added that Huang also privately criticized what he described as a lack of discipline in OpenAI’s business approach and expressed concerns about the competition Alphabet faces from companies like Google and Anthropic.
“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 to Reuters.
OpenAI did not immediately respond to Reuters’ request for comment.
Major tech companies and investors such as SoftBank Group Corp are racing to form partnerships with OpenAI, which spends heavily on data centers; They are betting that closer ties with the startup will give them a competitive advantage in the AI race.
Amazon is in talks to invest dozens of billions of dollars in OpenAI, a figure that could go as high as $50 billion, Reuters reported on Thursday.
OpenAI plans to raise up to $100 billion in funding, valuing it at around $830 billion, Reuters previously reported.
(Reporting by Fabiola Arámburo in Mexico City; Additional reporting by Carlos Méndez; Editing by Chris Reese)
