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Quick Summary
Nvidia has halted talks to invest up to US$100 billion in OpenAI, according to WSJ
Internal concerns at Nvidia reportedly stalled the deal
Partnership may still continue at a much smaller scale
Raises fresh questions about AI investment sustainability
What Happened
NVIDIA Corp has stopped negotiations on a planned US$100 billion investment in OpenAI, exposing a potential rift between two of the most influential players in artificial intelligence, the Wall Street Journal reported.
The talks reportedly broke down after internal concerns emerged within Nvidia, prompting both sides to rethink the structure of their partnership.
From Mega-Deal to Scaled-Back Option
The original plan, announced in September via a letter of intent, envisioned:
US$100B investment
Construction of new AI data centres
Up to 10 gigawatts of computing power — roughly equal to New York City’s peak electricity demand
Heavy use of Nvidia chips and infrastructure
Now, one alternative being discussed is a smaller investment worth tens of billions, tied to OpenAI’s current funding round.
What Nvidia and OpenAI Are Saying
Nvidia said in a statement:
“We have been OpenAI’s preferred partner for the last 10 years. We look forward to continuing to work together.”
However, it did not confirm the status of the talks.
OpenAI declined to comment.
Broader AI Funding Context
OpenAI is still aiming to raise up to US$100 billion in its current round. Other potential backers include:
Amazon, reportedly in talks to invest up to US$50B, while expanding cloud partnerships
Meanwhile, Nvidia continues to deploy capital elsewhere:
Recently announced an additional US$2B investment in CoreWeave, a key AI cloud provider and Nvidia customer
Circular Investment Concerns Resurface
These deals have renewed scrutiny over “circular AI financing” — where Nvidia invests in companies that, in turn, buy its chips.
Nvidia CEO Jensen Huang dismissed such criticism:
“The idea that it is circular is — it’s ridiculous.”
He argues these investments represent only a small fraction of total AI funding needs.
Bottom Line
The pause in Nvidia’s US$100B OpenAI deal marks a rare speed bump in the AI investment boom.
While collaboration between the two remains intact, the shift highlights growing caution around deal size, capital intensity, and long-term returns in the race to build AI infrastructure.
Key Takeaways
Mega AI deals are no longer automatic
Nvidia is becoming more selective on capital deployment
OpenAI funding plans remain ambitious, but face tighter scrutiny
Investor focus is shifting from scale to sustainability
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