NVIDIA and OpenAI Partnership Faces Challenges

NVIDIA and OpenAI, two big names in AI, had a large deal planned. NVIDIA would invest $100 billion to help OpenAI build powerful AI. But now, there are reports that this deal is not moving forward as planned. Some problems have come up between the two companies.
By Newsroom | Technology, Business |

The relationship between NVIDIA, a leading provider of AI-focused computing hardware, and OpenAI, a prominent artificial intelligence research laboratory, has become a focal point for understanding the broader AI ecosystem. Recent reports suggest a complex interplay of significant investment, strategic alignment, and emerging tensions. This investigation probes the nature of their interactions, the scale of financial commitments, and the potential implications for both companies and the wider industry.

The AI sector is experiencing rapid growth, with NVIDIA and OpenAI occupying central roles. NVIDIA's high-performance chips are essential for training and running advanced AI models, making the company a critical supplier. OpenAI, in turn, is a major consumer of these resources, pushing the boundaries of AI capabilities with its research and products. The intertwined nature of their operations means any shifts in their relationship have far-reaching consequences.

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What NVIDIA Corp.’s (NVDA) OpenAI Talks Mean for the Expanding AI Ecosystem - 1

Key Developments and Financial Commitments

Reports from September 2025 detailed a substantial financial commitment from NVIDIA to OpenAI.

  • September 22, 2025: Fortune reported that NVIDIA was set to invest $100 billion into OpenAI.

  • This investment was framed as a strategic partnership to deploy NVIDIA systems for OpenAI's next-generation AI infrastructure.

  • The primary aim was to support the training and operation of OpenAI's forthcoming models, with a specific focus on advances toward artificial general intelligence.

  • The investment was intended to directly fund the construction of data center and power capacity.

  • The Motley Fool and InvestorPlace also highlighted this significant deal around the same period, emphasizing the multiyear infrastructure buildout by OpenAI and the strengthening of NVIDIA's order backlog.

"The companies jointly announced they had signed a letter of intent for a strategic partnership to deploy at least 10 gigawatts of NVIDIA systems for OpenAI’s next-generation AI infrastructure to train and run its next generation of models." (Article 4)

"What the deal essentially outlines is OpenAI's intention to purchase Nvidia hardware for a massive, multiyear infrastructure buildout." (Article 6)

Emerging Tensions and Strategic Realignments

Despite the scale of the initial commitments, subsequent reports from early 2026 indicate a more complex and potentially strained dynamic between the two entities.

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What NVIDIA Corp.’s (NVDA) OpenAI Talks Mean for the Expanding AI Ecosystem - 2

  • February 2, 2026: CNBC, citing a Wall Street Journal report, indicated that NVIDIA's investment in OpenAI had stalled and faced uncertainty.

  • Sources familiar with the matter suggested that concerns about OpenAI's business strategy and a lack of discipline were raised.

  • Specific criticisms were reportedly directed at the perceived weaknesses of OpenAI's AI coding assistant, Codex, and its reliance on NVIDIA hardware.

  • This news led to a decline in NVIDIA shares.

"Company insiders said there was uncertainty about a deal between Nvidia and OpenAI, according to a Wall Street Journal report on Friday, citing people familiar with the matter." (Article 2)

"The report also claims that OpenAI has blamed some of its AI coding assistant Codex’s weaknesses on the Nvidia hardware." (Article 3)

  • February 3, 2026: Gizmodo further elaborated on these apparent tensions, suggesting a "falling out" between the two companies, which had previously been described as "long-term partners" and "darlings of AI hype."

  • Concerns were reportedly voiced by Jensen Huang, NVIDIA's CEO, about the potential impact on NVIDIA's sales if OpenAI were to falter, given OpenAI's status as a major customer.

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"OpenAI and Nvidia, the two darlings of AI hype and long-term partners, seem to be having a bit of a falling out." (Article 3)

Broader Ecosystem Implications

The interactions between NVIDIA and OpenAI are not isolated events but occur within a wider landscape of AI development and investment.

  • Circular Financing Concerns: Reports highlight market watchers' unease about "circular financing," where major AI companies invest in each other. This practice can obscure the actual profitability of these firms. (Article 2)

  • Competitive Landscape: The narrative also touches upon competition from other major players like Alphabet's Google and Anthropic, suggesting a dynamic and intense market environment. (Article 2)

  • NVIDIA's Investment Portfolio: While discussions around OpenAI are prominent, NVIDIA is also noted for other strategic collaborations, including alliances with Microsoft, Oracle, and SoftBank, indicating a broad strategy to build advanced AI infrastructure. (Article 4)

  • Investment Perspectives: Analysts acknowledge NVIDIA's central role in the AI ecosystem but suggest that other AI stocks might present greater upside potential with less risk. (Article 1)

Analysis of the Shifting Narrative

The progression of news surrounding NVIDIA and OpenAI suggests a dynamic evolution from a clear strategic partnership to one marked by negotiation and potential recalibration.

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  • Initial Large-Scale Commitment: The September 2025 reports depict a clear intent for a substantial, multiyear commitment from NVIDIA, focusing on infrastructure buildout for OpenAI's future models. This signaled strong mutual reliance and NVIDIA's crucial role in enabling OpenAI's ambitions.

  • Emergence of Disagreements: By early 2026, reports suggest a shift, with uncertainty around the deal and criticisms being voiced. This indicates that operational challenges, strategic disagreements, or a reassessment of terms may be at play. The attribution of Codex's weaknesses to NVIDIA hardware, if accurate, represents a direct point of contention.

  • Market Reaction: The reported stalling of the investment led to a discernible negative reaction in NVIDIA's stock price, underscoring the market's sensitivity to the health of this partnership.

"Some market watchers are concerned this is clouding the financial picture of how profitable these firms actually are." (Article 2)

Conclusion and Forward Outlook

The reported dealings between NVIDIA and OpenAI illustrate the intricate and often volatile nature of the burgeoning AI industry. An initial large-scale investment designed to secure future computing power appears to have encountered obstacles and emerging critiques.

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  • Findings: NVIDIA's significant financial and hardware commitments to OpenAI were announced in September 2025, aimed at supporting OpenAI's advanced model development. However, by February 2026, reports indicated uncertainty surrounding this deal, with internal criticisms and strategic concerns surfacing from both sides.

  • Implications: The health of this partnership is critical for NVIDIA's revenue streams and OpenAI's ability to execute its ambitious AI development roadmap. The situation also raises broader questions about financial transparency and competitive pressures within the AI sector.

  • Next Steps: Continued monitoring of official statements from both NVIDIA and OpenAI, as well as further investigative reporting from credible sources, is necessary to clarify the status of their collaboration and its impact on the wider AI ecosystem.

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Frequently Asked Questions

Q: What was the big plan between NVIDIA and OpenAI?
NVIDIA planned to invest $100 billion to help OpenAI build new AI computer systems. This was to help them make better AI models.
Q: Why is the deal uncertain now?
Reports say there are problems. Some people at NVIDIA are worried about OpenAI's plans. There are also reports that OpenAI blamed NVIDIA's hardware for some problems.
Q: How did this affect NVIDIA's stock?
When news came out that the deal was uncertain, NVIDIA's stock price went down.
Q: Are there other companies involved?
Yes, other big tech companies like Google and Anthropic are also working in AI. NVIDIA also works with other companies like Microsoft.