Nvidia-OpenAI $100B deal appears to collapse

Reports indicate that a previously discussed 100 billion dollar deal between Nvidia and OpenAI may not be moving forward. The Wall Street Journal reported that negotiations had not progressed. Nvidia chief executive Jensen Huang has privately described the deal as non-binding and not finalised. Huang told reporters in Taipei that Nvidia would make a huge investment into OpenAI's next funding round but nothing like 100 billion dollars. A Reuters report suggested that OpenAI was unsatisfied with Nvidia's advanced AI chips and was seeking alternatives from other suppliers. Nvidia's stock has declined 10 percent so far this week. OpenAI chief executive Sam Altman posted on X that the company loves working with Nvidia and hopes to be a gigantic customer for a very long time. An OpenAI spokesperson said teams are actively working through details of the partnership and that Nvidia technology will remain central as the company scales. Nvidia did not respond to a request for comment from the Guardian. Analyst Alvin Nguyen at research firm Forrester said OpenAI will need chips from multiple vendors given its growth plans. Nguyen also noted that Nvidia's commitment to the full amount may have been loose from the start.