Nvidia shares dropped 2% in premarket trading Monday after reports surfaced that the chipmaker's planned $100 billion investment in OpenAI has stalled amid growing tensions between the two AI giants. CEO Jensen Huang reportedly criticized OpenAI's business discipline and expressed concerns about competitive threats, casting doubt on what would be Nvidia's largest investment ever. The uncertainty comes just months after the companies announced an ambitious partnership to build massive computing infrastructure for AI development.
Nvidia just sent shockwaves through the AI investment world. The chip giant's shares tumbled 2% in premarket trading Monday after reports emerged that its blockbuster $100 billion investment in OpenAI has hit major turbulence. According to company insiders speaking to The Wall Street Journal, uncertainty now clouds what was supposed to be the largest single investment in Nvidia's history.
The cracks started showing late last year when CEO Jensen Huang began voicing doubts to industry associates. His complaints centered on what he saw as a lack of discipline in OpenAI's business strategy, sources told the Journal. Huang also flagged growing competitive pressure from rivals like Alphabet's Google and Anthropic, raising questions about whether OpenAI can maintain its edge in the rapidly evolving AI landscape.
This tension marks a dramatic shift from September's optimism. Back then, Nvidia and OpenAI jointly announced plans to build at least 10 gigawatts of computing power - enough infrastructure to train the next generation of AI models. The agreement included that eye-popping $100 billion investment figure, positioning Nvidia as both supplier and strategic backer of the ChatGPT maker.
