Nvidia CEO pushes back against report that his company’s $100B OpenAI investment has stalled
CEO Denies Friction Between Companies
Nvidia CEO Jensen Huang stated that a recent report claiming friction between his company and OpenAI was “nonsense.” He emphasized that there is no actual conflict between the two companies.
Deal Status and Market Reaction
Despite the reported stall in negotiations, the two companies are still expected to maintain a collaborative relationship. However, internal doubts have led to a market correction, with concerns over execution timelines and capital allocation.
Background of the $100 Billion Investment
The proposed $100 billion investment by Nvidia in OpenAI was initially seen as a major strategic move to support AI development. Nvidia would supply data center chips to OpenAI to help train and run its artificial intelligence models.
Previous Reports and Updates
- A Wall Street Journal report indicated that Nvidia had privately downplayed the likelihood of finalizing the original deal, though collaboration continues.
- Other sources suggest that internal disagreements and AI-bubble chatter have contributed to the perceived stall in negotiations.
- Some reports claim that Sam Altman’s influence played a role in prompting Jensen Huang to reconsider the investment.