The check isn’t in the mail just yet.
According to the Wall Street Journal, Nvidia’s blockbuster plan to invest up to $100 billion in OpenAI has stalled. The deal, which was set to secure OpenAI’s compute dominance, is now being reconsidered after internal doubts at the chip giant surfaced regarding the startup’s business fundamentals.
📉 THE SNAG: Nvidia CEO Jensen Huang is reportedly pumping the brakes.
- The Critique: Huang has privately expressed concern over a “lack of discipline” in OpenAI’s business approach.
- The Competition: He also cited growing threats from Google and Anthropic, suggesting OpenAI’s lead is no longer guaranteed.
- The Pivot: Instead of the original $100B operational/compute agreement, discussions have shifted to a standard equity investment of “tens of billions” in the current round.
⚔️ THE BIDDING WAR: While Nvidia hesitates, others are rushing in.
- Amazon is reportedly in talks to invest up to $50 billion in OpenAI.
- The Valuation: OpenAI is currently seeking to raise up to $100 billion at a staggering $830 billion valuation.
💡 ANALYST TAKEAWAY: This is a massive power move by Nvidia. As the “arms dealer” of the AI revolution, they don’t need to pick a winner—everyone buys their chips anyway. By pausing this deal, Jensen Huang is sending a signal to the entire market: Capital is no longer infinite, and even the poster child of AI (OpenAI) needs to show unit economic discipline. When the supplier questions the customer’s business model, it’s time to pay attention.
👇 Tech Strategists: Is Nvidia right to be cautious about OpenAI’s burn rate, or are they opening the door for Amazon to buy the ecosystem?