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$100 Billion Mega Deal Between OpenAI and Nvidia is on Ice

posted by janrinok on Tuesday February 03, @09:29AM   Printer-friendly
Techonomics

An Anonymous Coward writes:

The Wall Street Journal reports that NVIDIA's plan to invest $100 Billion in OpenAI may fall through.

Links:

According to "people familiar with the matter," Jen-Sen Huang has been privately downplaying the $100 billion / 10 gigawatt deal that was announced with OpenAI this past September. According to the WSJ's sources, talks between the two companies never got past "early stages." The article also claims that Jen-Sen has asserted, in private, that the September deal was non-binding. This is corroborated by a November filing by Nvidia admitting that there was "no assurance" of a "definitive agreement" with OpenAI. (CNBC source: https://www.cnbc.com/2025/11/19/nvidia-says-no-assurance-of-deal-with-openai-after-100-billion-pact.html )

Furthermore, on Saturday, Jen-Sen told reporters in Taipei that, while Nvidia will invest "a great deal of money" in OpenAI's latest funding round, it would be "nothing like" $100 billion. (Bloomberg link: https://www.bloomberg.com/news/articles/2026-01-31/nvidia-to-join-openai-s-current-funding-round-huang-says ).

However, the NVidia CEO Jensen Huang said Saturday that a recent report of friction between his company and OpenAI was "nonsense."

This is probably a good reminder to be skeptical of media reports of a deal in dollars or in gigawatts. Was a contract actually signed, or was it just an announcement?

Original Submission


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  • (Score: 3, Informative) by Revek on Tuesday February 03, @12:31PM (6 children)

    by Revek (5022) on Tuesday February 03, @12:31PM (#1432346)

    When you are trading money back and forth eventually it isn't even real money.

    --
    This page was generated by a Swarm of Roaming Elephants

    • (Score: 5, Touché) by looorg on Tuesday February 03, @01:55PM (1 child)

      by looorg (578) on Tuesday February 03, @01:55PM (#1432352)

      But how will they inflate each others stock prices or ipo:s now that they can't, or won't, circle jerk each other all day long ...

      • (Score: 2) by Revek on Tuesday February 03, @03:09PM

        by Revek (5022) on Tuesday February 03, @03:09PM (#1432362)

        pop pop, fizz fizz, oh what a relief it is.

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        This page was generated by a Swarm of Roaming Elephants

    • (Score: 5, Insightful) by Snotnose on Tuesday February 03, @05:48PM (1 child)

      by Snotnose (1623) Subscriber Badge on Tuesday February 03, @05:48PM (#1432390)

      It's not imaginary. When things go pop you and I will be in a world of hurt. The billionaires responsible? Notsomuch.

      --
      It was a once in a lifetime experience. Which means I'll never do it again.

      • (Score: 1) by khallow on Wednesday February 04, @09:46AM

        by khallow (3766) Subscriber Badge on Wednesday February 04, @09:46AM (#1432500) Journal
        Unless of course, you take simple measures: don't invest in companies that invest huge amounts in the present AI industry. And save up some money, economic downturns are great times to invest.

    • (Score: 2) by sgleysti on Tuesday February 03, @08:07PM (1 child)

      by sgleysti (56) Subscriber Badge on Tuesday February 03, @08:07PM (#1432406)

      If you're not already aware of how fractional reserve banking works, look it up.

      • (Score: 3, Touché) by Revek on Tuesday February 03, @09:42PM

        by Revek (5022) on Tuesday February 03, @09:42PM (#1432433)

        They are not a bank. They are a pyramid scheme.

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        This page was generated by a Swarm of Roaming Elephants
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