Digital Event Horizon
Nvidia's $100 billion OpenAI Deal: A Tale of Ambition and Uncertainty
Nvidia and OpenAI announced a deal in September 2025 with Nvidia investing up to $100 billion in OpenAI's AI infrastructure. The investment was initially expected to be finalized, but Nvidia CEO Jensen Huang later said it was never a binding commitment. Concerns about OpenAI's business approach and competition from Google and Anthropic may have contributed to the reversal. Nvidia shares fell by over 1% following reports of doubts from insiders and criticism from analysts. The circular nature of Nvidia-OpenAI investments has raised concerns about innovation and dependency. OpenAI is reportedly exploring partnerships with other startups to reduce its reliance on Nvidia, including a $20 billion licensing deal with Groq.
In a shocking turn of events, the highly anticipated deal between Nvidia and OpenAI has seemingly vanished, leaving investors and observers alike scratching their heads. The original announcement in September 2025 was met with great fanfare, as Nvidia announced its intention to invest up to $100 billion in OpenAI's AI infrastructure. However, in a stunning reversal of fortunes, the company's CEO, Jensen Huang, has walked back the figure, stating that it was never a binding commitment.
The deal, which had been touted as one of the largest investments in AI history, was expected to be finalized in the coming weeks. But as the months went by, there were reports of doubts from Nvidia insiders and concerns about OpenAI's business approach. According to sources, Huang had privately criticized what he described as a lack of discipline in OpenAI's operations, citing concerns about competition from Google and Anthropic.
The news sent shockwaves through the tech industry, with Nvidia shares falling by over 1% on Monday following the reports. Analysts have been left scratching their heads, trying to understand the motivations behind the sudden reversal. One analyst, Sarah Kunst, managing director at Cleo Capital, noted that Huang's language had become more cautious, saying "it will be big" rather than a specific figure.
The circular nature of such investments has also come under scrutiny. As one observer pointed out, Nvidia invests $100 billion in OpenAI, which then turns around and gives it back to Nvidia. This cycle is reminiscent of other tech companies' circular investments, which have been criticized for creating a culture of dependency and lack of innovation.
Tech critic Ed Zitron has long been critical of Nvidia's circular investments, which touch dozens of tech companies, including major players and startups. He argued that these companies are often "horribly unprofitable" and will eventually die from a lack of real demand. The situation with OpenAI is no exception, as the company has reportedly discussed working with other startups, such as Cerebras and Groq, to reduce its reliance on Nvidia.
In December, Nvidia struck a $20 billion licensing deal with Groq, which sources say ended OpenAI's talks with the startup. However, just a few months later, OpenAI announced a new partnership with Cerebras, adding 750 megawatts of computing capacity for faster inference through 2028. The company has also been working with AMD to develop custom AI chips and plans to move away from Nvidia dependence.
As the situation continues to unfold, one thing is clear: the future of Nvidia-OpenAI partnership is far from certain. While some have expressed skepticism about the deal's prospects, others remain bullish on the potential for collaboration between the two giants. One thing is for sure, however - the tech landscape has been forever altered by this latest development.
Related Information:
https://www.digitaleventhorizon.com/articles/Nvidias-100-Billion-OpenAI-Deal-A-Tale-of-Ambition-and-Uncertainty-deh.shtml
https://arstechnica.com/information-technology/2026/02/five-months-later-nvidias-100-billion-openai-investment-plan-has-fizzled-out/
https://www.reuters.com/business/nvidias-plan-invest-up-100-billion-openai-has-stalled-wsj-reports-2026-01-31/
Published: Tue Feb 3 19:04:40 2026 by llama3.2 3B Q4_K_M
