Nvidia's $100 Billion OpenAI Investment Plan Reportedly Hits Snag Amid Internal Concerns

Core Viewpoint - Nvidia's ambitious plan to invest up to $100 billion in OpenAI has encountered internal doubts and is currently being reassessed, potentially leading to a significantly smaller investment [2][3][5]. Group 1: Investment Details - Nvidia had initially announced plans to invest up to $100 billion in OpenAI to strengthen their partnership and support OpenAI's data center expansion [2]. - Current discussions are focusing on a smaller equity investment, potentially in the tens of billions of dollars, as part of OpenAI's ongoing fundraising efforts [3]. Group 2: Internal Concerns - Nvidia executives have raised concerns regarding the scope and structure of the proposed deal, leading to a reevaluation of the partnership [2]. - CEO Jensen Huang indicated that the original $100 billion proposal was nonbinding and never finalized, expressing caution about the investment [5]. Group 3: Competitive Landscape - Huang has voiced concerns about OpenAI's financial discipline, particularly regarding its aggressive spending to scale infrastructure [6]. - OpenAI faces increasing competition from major players like Alphabet's Google and Amazon-backed Anthropic, which may influence Nvidia's investment decision [7]. Group 4: Market Interest - OpenAI is reportedly seeking to raise up to $100 billion at a valuation of approximately $830 billion, attracting interest from major tech firms and investors [8]. - Amazon is also in discussions to invest tens of billions in OpenAI, with potential figures reaching $50 billion [9].