Nvidia’s (NVDA) plans to invest up to $100B in Microsoft (MSFT)-backed OpenAI (OPENAI) as part of a blockbuster deal announced last year have stalled after some insiders within the Jensen Huang-led company expressed doubts about the agreement, The Wall Street Journal reported.
Citing people familiar with the matter, the Journal reported late Friday that the two firms are reviewing the future of their collaboration.
According to several people, an equity investment worth tens of billions of dollars under OpenAI’s current funding round has also come up during the latest discussions.
Under the partnership announced in September, Nvidia (NVDA) agreed to build at least 10 gigawatts of computing power for OpenAI and pledged to invest up to $100B in the Sam Altman-led startup.
In exchange, OpenAI agreed to lease the chips from the Santa Clara, California-headquartered tech giant and planned to deploy the first gigawatt of NVIDIA systems in the second half of 2026.
People familiar with the matter said that Nvidia (NVDA) CEO Jensen Huang has privately told business associates that the original agreement was not binding and finalized.
He has also identified OpenAI’s business approach as lacking discipline and noted the rivalry the company faces from AI players such as Google (GOOG) (GOOGL) and Amazon (AMZN)/Google (GOOG)-backed Anthropic.
“Our teams are actively working through details of our partnership. NVIDIA technology has underpinned our breakthroughs from the start, powers our systems today, and will remain central as we scale what comes next,” an OpenAI (OPENAI) spokesperson told the Journal.
A spokeswoman for Nvidia (NVDA) added that her company looked forward to collaborating with OpenAI (OPENAI), which she said had selected the chipmaker as its preferred partner for the past decade.