Usman Salis
⬤ Nvidia has pulled out of investment talks with OpenAI after negotiations fell apart. The discussions, which centered around what many reports pegged as a $100 billion deal, never progressed beyond preliminary stages. The company has confirmed that the massive dollar figure circulating in media coverage was never finalized or officially committed.
⬤ Nvidia CEO Jensen Huang reportedly told colleagues the $100 billion number wasn't set in stone. According to sources, Huang expressed frustration with OpenAI's business operations, privately questioning the company's organizational discipline. These concerns about structure and execution apparently became deal-breakers as talks moved forward.
⬤ The breakdown means one of the biggest potential AI investments ever discussed is now off the table. While Nvidia continues dominating the AI hardware space through its chips and infrastructure, it won't be taking an equity stake in OpenAI under the previously discussed terms. Neither company has mentioned any plans to revisit the deal or explore alternative arrangements.
⬤ This matters because it shows how tricky mega-deals in AI can be, especially when questions about governance and operational standards come into play. Nvidia walking away demonstrates how quickly market expectations can shift when talks hit fundamental disagreements. The situation might make future AI investment negotiations more cautious, with less weight given to preliminary figures and more focus on actual deal terms before anything gets announced.
Usman Salis
