Nvidia’s $100 Billion Investment Plan Loses Momentum
Nvidia’s plan to put up to $100 billion into OpenAI, which we talked about before, has slowed down a lot. The proposal, which was first brought up in late 2025, was called “preliminary” and “nonbinding” by people inside the company.
Sources say that the investment didn’t go as planned because internal reviews brought up strategic and financial issues. Executives started to think about whether such a big commitment was in line with Nvidia’s long-term goals.
Source: Nvidia Newsroom/Website
Internal Reservations Reshape Nvidia’s Strategy
Reports say that Nvidia’s top executives questioned the size and return profile of the proposed investment. Some people thought the commitment was too big compared to how Nvidia has historically spent its money.
These concerns made the leadership think twice about locking in funding at record levels. Instead, those in charge chose to take a break to reevaluate the state of the market and the competition.
OpenAI Faces More Competition
People were also worried that OpenAI would have to deal with more and more competition in the basic AI markets. Competitors like Google and Anthropic are still getting money and business customers.
This competitive environment made people wonder about OpenAI’s long-term profit margins and ability to set prices. During internal investment talks, Nvidia’s leaders are said to have thought about these things a lot.
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Smaller Equity Investment Now Under Discussion
Instead of going after one big deal, Nvidia and OpenAI are now looking into smaller equity investments. Reports say that the current talks are instead about an investment worth tens of billions.
This new plan would still improve strategic alignment without putting Nvidia at risk of losing a lot of money. It also lets OpenAI’s broader fundraising change as needed.
Longstanding Partnership Remains Intact
Nvidia has stressed the strength of its relationship with OpenAI, even though the mega-deal is on hold. Through advanced AI chip supply agreements, the companies are still closely linked.
Infrastructure collaboration is still helping OpenAI with its needs for training and deploying large-scale models. Both sides have made it clear that they want to keep working together in the long term.
OpenAI’s Massive Fundraising Efforts Continue
Reports say that OpenAI is looking for up to $100 billion in new funding. The company could be worth about $830 billion in a future public offering.
Other big tech companies and investors are also talking about putting money into the project. Amazon and SoftBank Group are two companies that are said to be thinking about joining.
What The Stalled Deal Signals For AI Markets
Nvidia’s hesitation shows that people are becoming more careful, even though there are aggressive cycles of investment in artificial intelligence. As competition and prices rise quickly, capital discipline seems to be becoming more and more important.
The situation makes it likely that future AI mega-deals will be looked at more closely. Now, as much as being a leader in technology, strategic alignment and long-term returns are important.
