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Nvidia Halts $100 Billion Deal with OpenAI
Nvidia has announced that the previously anticipated $100 billion deal with OpenAI is currently stalled, with negotiations remaining in the early phases. CEO Jensen Huang has criticized OpenAI for a lack of internal discipline, emphasizing that the Letter of Intent is non-binding.
Initially, the partnership aimed to establish a significant infrastructure collaboration, but discussions have shifted towards a much smaller equity investment of approximately $10 billion. This change reflects a reevaluation of the collaboration's scope and raises questions about the future of large-scale AI infrastructure deals.
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"We were OpenAI's preferred partner for ten years. We look forward to continuing our collaboration," stated Nvidia.
In September 2025, the partnership was heralded as a major milestone, with plans to provide at least ten gigawatts of Nvidia systems for the next generation of AI infrastructure. However, Nvidia's CFO Colette Kress confirmed in December 2025 that no definitive agreement exists, indicating that while the partnership remains strong, concrete commitments are lacking.
As Nvidia reassesses its position, internal concerns about OpenAI's business discipline have emerged, compounded by increasing competition from Google's Gemini and Anthropic. The company is closely monitoring the evolving AI market and appears to be recalibrating the risks associated with such a substantial investment.
Shift to Equity Investment
Instead of the originally planned infrastructure partnership, Nvidia and OpenAI are now discussing an equity investment of around $10 billion as part of OpenAI's current funding round. OpenAI is targeting a valuation of approximately $830 billion, with a total funding goal of up to $100 billion. This alternative approach would be more manageable for Nvidia and entail fewer operational commitments.
The planned IPO of OpenAI in the fourth quarter of 2026 adds another layer of complexity to the situation, as it would introduce new transparency requirements and potentially alter the dynamics of negotiations. Sam Altman's tendency for rapid announcements that do not always materialize also plays a significant role in the ongoing discussions.
"Both sides are actively coordinating the details of the partnership. Nvidia's technology has supported our innovation from the beginning," OpenAI responded.
Despite the delays, both companies emphasize the strength of their long-standing partnership. The current impasse illustrates the complexities involved in mega-partnerships within the AI infrastructure sector, as Nvidia adopts a more cautious approach compared to competitors like Amazon, which plans to invest up to $50 billion in OpenAI.
Implications for the AI Industry
The stalled deal highlights the intricate nature of major partnerships in the AI infrastructure landscape. While OpenAI continues to rely on Nvidia as its primary GPU supplier, the form of their collaboration must now be renegotiated. This situation serves as a reminder that even in the thriving AI sector, not every grand announcement translates into reality, underscoring the importance of business discipline and sustainable structures.
In summary, the Nvidia and OpenAI partnership is at a crossroads, with a shift from a massive infrastructure deal to a more manageable equity investment. The evolving dynamics of the AI market and internal challenges at OpenAI are reshaping the future of this collaboration.
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