Nvidia’s not investing $100 billion in OpenAI because the chip designer doesn’t want to pay the OpenAI valuation tax
Sherwood News • • business
Key Points:
- Nvidia's planned investment of up to $100 billion in OpenAI has stalled, with internal doubts at Nvidia and no progress made since the non-binding letter of intent announced in September.
- Nvidia CEO Jensen Huang clarified that the $100 billion figure was never a firm commitment and expressed concerns over OpenAI's business discipline and competition from rivals like Google and Anthropic.
- Despite the stalled deal, Nvidia will still participate in OpenAI’s current funding round, potentially making it the largest investment Nvidia has ever made, reflecting its strategic interest in the AI supply chain.
- Nvidia aims to avoid over-reliance on OpenAI to prevent negative market perceptions, as seen in stock price impacts on companies heavily dependent on OpenAI’s future revenue.
