Nvidia and OpenAI: The $100B Deal That Fizzled, but the Partnership Endures
Reports of a massive $100 billion investment by Nvidia into OpenAI have seemingly evaporated, leading to market speculation. However, both tech giants emphasize a continued, albeit evolving, strategic relationship.
The much-hyped $100 billion investment deal between artificial intelligence titan Nvidia and leading AI research firm OpenAI, initially announced with fanfare in September 2025, appears to have significantly downsized or potentially stalled. While earlier reports suggested a firm commitment for Nvidia to inject substantial capital into OpenAI's AI infrastructure, recent developments indicate a more nuanced and perhaps less expansive partnership.
The initial announcement, which promised to finalize details "in the coming weeks," has now stretched into months without a closed deal. Nvidia's CEO has since clarified that the $100 billion figure was "never a commitment," a statement that has contributed to market jitters and speculation about the future of this high-profile collaboration. This recalibration follows reports from Reuters, citing multiple sources, that OpenAI has been actively exploring alternatives to Nvidia's chips for its AI models since late last year.
Performance Concerns and Shifting Strategies
According to Reuters, OpenAI's dissatisfaction stems from the speed of some Nvidia chips, particularly concerning inference tasks – the process by which trained AI models generate responses to user queries. The report highlights that these performance limitations were allegedly observed within OpenAI's Codex, an AI code-generation tool. Sources familiar with the matter indicated that OpenAI staff attributed some of Codex's performance bottlenecks to Nvidia's GPU-based hardware.
This divergence in performance expectations has seemingly prompted OpenAI to diversify its hardware strategy. While Nvidia remains a dominant force in AI chip manufacturing, the AI landscape is evolving rapidly, with various players vying to provide optimized solutions for the immense computational demands of advanced AI models. The push for specialized hardware that can accelerate both training and inference is a key driver in this market.
Public Reassurance Amidst Speculation
In an effort to quell market concerns and reaffirm their working relationship, both Nvidia and OpenAI have publicly addressed the rumors. OpenAI CEO Sam Altman took to social media platform X (formerly Twitter) to express his continued confidence in Nvidia: "We love working with NVIDIA and they make the best AI chips in the world. We hope to be a gigantic customer for a very long time. I don’t get where all this insanity is coming from." This statement aims to temper the narrative of discord and emphasize the ongoing reliance on Nvidia's technology.
Despite these public reassurances, the initial scale of the proposed investment has seemingly been revised. While the $100 billion figure appears to have diminished in significance, reports have surfaced suggesting a more modest, yet still substantial, investment of around $20 billion in OpenAI's next funding round. This adjusted figure, as reported by The Decoder, indicates that while the partnership may not be as colossal as initially speculated, a significant financial commitment from Nvidia is still on the table.
An Evolving Interdependence
The situation underscores the complex and dynamic nature of the AI industry. Nvidia, a key enabler of AI development through its powerful GPUs, and OpenAI, a frontrunner in AI research and model development, are intrinsically linked. Nvidia relies on companies like OpenAI to drive demand for its high-performance computing hardware, while OpenAI depends on Nvidia's chips to power its cutting-edge AI models. This interdependence means that even if specific deal terms are renegotiated or altered, the strategic necessity of their collaboration remains.
The adjustment in investment scale may reflect a recalibration of expectations, a response to evolving technological needs, or a broader market strategy by both companies. As AI continues its rapid advancement, partnerships are likely to be characterized by flexibility and adaptation. The focus has shifted from a singular, massive investment to a more measured, "one step at a time" approach, acknowledging the ongoing evolution of AI hardware and software requirements. The long-term outlook suggests that despite the current fluctuations, Nvidia and OpenAI will likely continue to be significant partners in shaping the future of artificial intelligence.
