{"id":406844,"date":"2026-02-04T05:28:13","date_gmt":"2026-02-04T05:28:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/406844\/"},"modified":"2026-02-04T05:28:13","modified_gmt":"2026-02-04T05:28:13","slug":"nvidias-100-billion-openai-deal-has-seemingly-vanished","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/406844\/","title":{"rendered":"Nvidia’s $100 billion OpenAI deal has seemingly vanished"},"content":{"rendered":"

A Wall Street Journal report<\/a> on Friday said Nvidia insiders had expressed doubts about the transaction and that Huang had privately criticized what he described as a lack of discipline in OpenAI\u2019s business approach. The Journal also reported that Huang had expressed concern about the competition OpenAI faces from Google and Anthropic. Huang called those claims \u201cnonsense.\u201d<\/p>\n

Nvidia shares fell about 1.1 percent on Monday following the reports. Sarah Kunst, managing director at Cleo Capital, told CNBC<\/a> that the back-and-forth was unusual. \u201cOne of the things I did notice about Jensen Huang is that there wasn\u2019t a strong \u2018It will be $100 billion.\u2019 It was, \u2018It will be big. It will be our biggest investment ever.\u2019 And so I do think there are some question marks there.\u201d<\/p>\n

In September, Bryn Talkington, managing partner at Requisite Capital Management, noted<\/a> the circular nature of such investments to CNBC. \u201cNvidia invests $100 billion in OpenAI, which then OpenAI turns back and gives it back to Nvidia,\u201d Talkington said. \u201cI feel like this is going to be very virtuous for Jensen.\u201d<\/p>\n

Tech critic Ed Zitron has been critical of Nvidia\u2019s circular investments for some time, which touch<\/a> dozens of tech companies, including major players and startups. They are also all Nvidia customers.<\/p>\n

\u201cNVIDIA seeds companies and gives them the guaranteed contracts necessary to raise debt to buy GPUs from NVIDIA,\u201d Zitron wrote<\/a> on Bluesky last September, \u201cEven though these companies are horribly unprofitable and will eventually die from a lack of any real demand.\u201d<\/p>\n

Chips from other places<\/p>\n

Outside of sourcing GPUs from Nvidia, OpenAI has reportedly discussed working with startups Cerebras and Groq, both of which build chips designed to reduce inference latency. But in December, Nvidia struck<\/a> a $20 billion licensing deal with Groq, which Reuters sources say ended OpenAI\u2019s talks with Groq. Nvidia hired<\/a> Groq\u2019s founder and CEO Jonathan Ross along with other senior leaders as part of the arrangement.<\/p>\n

In January, OpenAI announced<\/a> a $10 billion deal with Cerebras instead, adding 750 megawatts of computing capacity for faster inference through 2028. Sachin Katti, who joined OpenAI from Intel in November to lead compute infrastructure, said the partnership adds \u201ca dedicated low-latency inference solution\u201d to OpenAI\u2019s platform.<\/p>\n

But OpenAI has clearly been hedging its bets. Beyond the Cerebras deal, the company struck an agreement<\/a> with AMD in October for six gigawatts of GPUs and announced plans<\/a> with Broadcom to develop a custom AI chip to wean itself off of Nvidia dependence. When those chips will be ready, however, is currently unknown.<\/p>\n","protected":false},"excerpt":{"rendered":"A Wall Street Journal report on Friday said Nvidia insiders had expressed doubts about the transaction and that…\n","protected":false},"author":2,"featured_media":406845,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[554,733,4308,86,56,54,55],"class_list":{"0":"post-406844","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-technology","12":"tag-uk","13":"tag-united-kingdom","14":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/406844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=406844"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/406844\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/406845"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=406844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=406844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=406844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}