Nvidia CEO Denies OpenAI's $100B Investment from Nvidia is 'Stalled' (msn.com) 19
Saturday Nvidia CEO Jensen Huang said they still planned a "huge" investment in OpenAI, according to CNBC.
Friday the Wall Street Journal had reported that Nvidia's plan to invest up to $100 billion in OpenAI "has stalled after some inside the chip giant expressed doubts about the deal, people familiar with the matter said..." [T]he talks haven't progressed beyond the early stages, some of the people said. Now, the two sides are rethinking the future of their partnership, some of the people said. The latest discussions, they said, include an equity investment of tens of billions of dollars as part of OpenAI's current funding round. Nvidia CEO Jensen Huang has privately emphasized to industry associates in recent months that the original $100 billion agreement was nonbinding and not finalized, people familiar with the matter said. He has also privately criticized what he has described as a lack of discipline in OpenAI's business approach and expressed concern about the competition it faces from the likes of Google and Anthropic, some of the people said...
OpenAI is laying the foundation to go public by the end of 2026, and has spent much of the past year racing to secure large amounts of computing capacity to help power OpenAI's future products and growth. The stalled Nvidia pact is a blow to this effort and shows how Chief Executive Sam Altman's penchant for announcing flashy big-ticket deals carries the potential to backfire if the terms have yet to be finalized. In a joint announcement unveiling the September deal with Altman and OpenAI President Greg Brockman, Huang called the deal "the largest computing project in history...." OpenAI went on to sign a string of other agreements with chip and cloud companies that helped fuel a global stock market rally.
But investors have since grown jittery about the startup's ability to pay for these deals, leading to a sell-off in some tech stocks tied to OpenAI. Altman has said that the deals put the startup on the hook for $1.4 trillion in computing commitments — more than 100 times the revenue it was on pace to generate last year. OpenAI executives say the total commitments are lower when you account for overlap in some of the deals, and that the agreements will take place over a long period of time.... Huang has indicated to associates that he still believes it's crucially important to provide OpenAI with financial support in one form or another, in part because OpenAI is one of the chip designer's largest customers, people familiar with the matter said. If OpenAI were to fall behind other AI developers, it could dent Nvidia's sales.
"Speaking to reporters in Taipei, Huang said it was 'nonsense' to say he was unhappy with OpenAI," CNBC reported Saturday: "We are going to make a huge investment in OpenAI. I believe in OpenAI, the work that they do is incredible, they are one of the most consequential companies of our time and I really love working with Sam," he said, referring to OpenAI CEO Sam Altman. "Sam is closing the round (of investment) and we will absolutely be involved," Huang added. "We will invest a great deal of money, probably the largest investment we've ever made."
Asked whether it would be over $100 billion, he said: "No, no, nothing like that."
Elsewhere the Journal has reported that Amazon is in talks to invest up to $50 billion in OpenAI. Thanks to Slashdot reader sinij for sharing the article.
Friday the Wall Street Journal had reported that Nvidia's plan to invest up to $100 billion in OpenAI "has stalled after some inside the chip giant expressed doubts about the deal, people familiar with the matter said..." [T]he talks haven't progressed beyond the early stages, some of the people said. Now, the two sides are rethinking the future of their partnership, some of the people said. The latest discussions, they said, include an equity investment of tens of billions of dollars as part of OpenAI's current funding round. Nvidia CEO Jensen Huang has privately emphasized to industry associates in recent months that the original $100 billion agreement was nonbinding and not finalized, people familiar with the matter said. He has also privately criticized what he has described as a lack of discipline in OpenAI's business approach and expressed concern about the competition it faces from the likes of Google and Anthropic, some of the people said...
OpenAI is laying the foundation to go public by the end of 2026, and has spent much of the past year racing to secure large amounts of computing capacity to help power OpenAI's future products and growth. The stalled Nvidia pact is a blow to this effort and shows how Chief Executive Sam Altman's penchant for announcing flashy big-ticket deals carries the potential to backfire if the terms have yet to be finalized. In a joint announcement unveiling the September deal with Altman and OpenAI President Greg Brockman, Huang called the deal "the largest computing project in history...." OpenAI went on to sign a string of other agreements with chip and cloud companies that helped fuel a global stock market rally.
But investors have since grown jittery about the startup's ability to pay for these deals, leading to a sell-off in some tech stocks tied to OpenAI. Altman has said that the deals put the startup on the hook for $1.4 trillion in computing commitments — more than 100 times the revenue it was on pace to generate last year. OpenAI executives say the total commitments are lower when you account for overlap in some of the deals, and that the agreements will take place over a long period of time.... Huang has indicated to associates that he still believes it's crucially important to provide OpenAI with financial support in one form or another, in part because OpenAI is one of the chip designer's largest customers, people familiar with the matter said. If OpenAI were to fall behind other AI developers, it could dent Nvidia's sales.
"Speaking to reporters in Taipei, Huang said it was 'nonsense' to say he was unhappy with OpenAI," CNBC reported Saturday: "We are going to make a huge investment in OpenAI. I believe in OpenAI, the work that they do is incredible, they are one of the most consequential companies of our time and I really love working with Sam," he said, referring to OpenAI CEO Sam Altman. "Sam is closing the round (of investment) and we will absolutely be involved," Huang added. "We will invest a great deal of money, probably the largest investment we've ever made."
Asked whether it would be over $100 billion, he said: "No, no, nothing like that."
Elsewhere the Journal has reported that Amazon is in talks to invest up to $50 billion in OpenAI. Thanks to Slashdot reader sinij for sharing the article.
Going public? (Score:3)
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Earlier, please!
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Re: Going public? (Score:2)
Re: Going public? (Score:2)
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I dunno, every time there's some sign the bubble will finally pop it somehow magically manages to keep going. It's like some horror-movie zombie that just keeps coming back again and again long after it should have met its demise.
It's the quasi-religious true believers, or at least the behavior as if they are true believers, surrounding the possibility of actual artificial intelligence, and the promise that it will lead to AI God, the machine that will fix all problems in the universe, and make us one and kumbaya and all that shit. Literally every argument against continuing down this path, no matter how rational and sane, is met with, "But if we stop someone else will create AI God with an agenda we don't like. WE MUST CONTROL AI G
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...the early investors get a chance to crash out.
Ya left out a letter there.
Piss off Elon? (Score:3, Insightful)
He had been deep throating Elon for most of 2025, and now he's going to invest in OpenAI for which Elon has a vendetta?
Bubble full yet? (Score:2)
Can't blow anymore hot air into it?
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Re:Bubble full yet? (Score:4, Interesting)
They're out of money. Oracle is selling stuff to cover commitments that can't physically be built for businesses that are losing billions of dollars, all on spec. NVidia is certainly wealthy, but even their pockets aren't deep enough prop up all the tents. The VC money doesn't exist anymore: their capitalization is one full order of magnitude smaller than the latest plays, where ultra wealthy Big Tech companies are capitalizing their own customers with hundreds of billions of dollars.
They're out of power. All the low hanging power sources are tapped. Where spare power exists, it's surrounded by a hostile population (see Stargate Michigan, failing simultaneously on two fronts: pushback from citizens and finance.) They flailing around, talking about building nuclear reactors in Elon Time, which is never going to happen.
They're out of hardware. Stargate Abilene is never going to make its build-out schedule: it was supposed to be running in 2026, but it won't be complete till 2027 or later unless some alien spacecraft unloads thousands of pallets of GB200 racks at some point in the next few months. It is physically impossible to build and deploy that much hardware on this planet at this time. Meanwhile, costs of every type of silicon they need is skyrocketing, blowing out costs.
They're running out of smoke. The banks that are funding all this leverage are getting nervous, asking questions, and pushing back. Despite suspending their brains for the last few years, they can actually do math, and the math says that there isn't really as much money in all this as they've allowed themselves to be led to believe. OpenAI is enshittfying their product with ads trying to come up with a revenue source, because their product is already a commodity: it works, but it's also not difficult to make (there are multiple competitors at parity now,) and eventually it will be cheap. So these huge investments and build-outs aren't ever going to pay off.
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Why? (Score:2)
Why is it considered news when someone says something utterly predictable?
Re: Why? (Score:2)
Why do 10 billion when you can do 100 billion (Score:2)
But these companies are coming up with figures that they don't have. Is anyone evaluating risk? These business plans are not infalable.
So is this confirmation? (Score:3)
Denial without actual explanation is typically just PR fluff.