Nvidia’s USD 100 Billion Investment Plan in OpenAI Has Stalled Amid Internal Doubts and Strategic Concerns: Report
Nvidia’s proposed USD 100 billion investment in OpenAI has stalled after internal concerns. The pause raises uncertainty over funding for next-generation AI models. While Nvidia stresses its long-term partnership, rivals like Amazon and SoftBank are circling as OpenAI seeks capital at an USD 830 billion valuation level.
Santa Clara, January 31: Nvidia’s ambitious plan to invest up to 100 billion USD in OpenAI has reportedly hit a standstill. The deal, which was intended to provide the ChatGPT creator with the capital required to train and operate its next generation of artificial intelligence models, has been paused following internal reservations within the semiconductor giant.
The Wall Street Journal first reported on Friday that some officials within Nvidia expressed doubts regarding the massive investment. While the partnership was expected to solidify Nvidia's role at the centre of the AI boom, the internal pushback has created uncertainty around the timeline and the finality of the agreement. Tim Cook Gives 'Clues' on Global Memory Shortage Impact Following Record Apple Q1 2026 Earnings.
Nvidia Investment Stalls
In September, Nvidia announced its intention to commit up to 100 billion USD to OpenAI. This deal was strategically designed to ensure OpenAI had the necessary cash flow and prioritised access to advanced Blackwell chips, which are essential for maintaining a dominant position in the increasingly crowded AI landscape.
Despite the reports of a stalemate, Nvidia maintains that its long-term relationship with the startup remains intact. A spokesperson for the chipmaker stated that the company has been OpenAI's preferred partner for a decade and looks forward to continuing their collaborative work, though they did not comment specifically on the status of the 100 billion USD commitment.
AI Industry Competition
The potential delay comes at a time when other major technology firms and global investors are racing to secure ties with OpenAI. The startup is currently spending heavily on massive data centres to support its compute-intensive models, leading to a significant need for external capital and infrastructure support.
Amazon is reportedly in discussions to invest tens of billions of USD in OpenAI, with figures suggested to be as high as 50 billion USD. Additionally, SoftBank Group Corp has shown interest in forging closer ties, as the world’s largest tech investors bet on the startup to lead the next phase of the AI revolution.
OpenAI Valuation
OpenAI is currently seeking to raise a total of 100 billion USD in new funding. If successful, this capital infusion would bring the company's valuation to approximately 830 billion USD, making it one of the most valuable private entities in the world. Paytm Share Price Falls 2% Despite Solid Q3 Results as Investors Book Profits; Net Profit Reaches INR 225 Crore.
While OpenAI did not immediately respond to requests for comment regarding the stalled Nvidia deal, the outcome of these negotiations will be critical for the industry. The interplay between hardware providers like Nvidia and software innovators like OpenAI continues to dictate the pace of global AI development.
(The above story first appeared on LatestLY on Jan 31, 2026 07:29 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).