Podcast Episode
Some analysts have raised concerns about the circular nature of the financial arrangement, where Nvidia invests capital into OpenAI, which then uses that same capital to purchase Nvidia's chips and systems. Others estimated the deal could generate up to five hundred billion dollars in revenue for Nvidia, but the company's filing spelled out risks including the fragile architecture of such megadeals.
Amazon is in discussions to invest as much as fifty billion dollars, with CEO Andy Jassy leading negotiations directly with Altman. Microsoft, which already holds roughly twenty-seven percent equity in OpenAI, is discussing an investment under ten billion dollars. Japan's SoftBank Group is exploring an additional thirty billion dollar investment, having already become one of OpenAI's largest shareholders with an eleven percent stake.
Nvidia's $100 Billion OpenAI Deal Stalls as Doubts Emerge Inside Chip Giant
January 31, 2026
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Nvidia's blockbuster $100 billion partnership with OpenAI has hit a significant roadblock, with internal skepticism causing the deal to stall. The setback comes just months after the two companies announced what was called the biggest AI infrastructure project in history, and OpenAI is now pivoting to secure funding from multiple sources including Amazon, Microsoft, and SoftBank.
The Deal That Made Headlines
In September 2025, Nvidia CEO Jensen Huang and OpenAI CEO Sam Altman stood together in Santa Clara to announce what Huang called the biggest AI infrastructure project in history. The memorandum of understanding outlined Nvidia's commitment to provide at least ten gigawatts of computing capacity for OpenAI, with investments of up to one hundred billion dollars tied to deployment milestones.Warning Signs Emerged Early
The path to this impasse was visible in Nvidia's own regulatory filings. In November 2025, the company's quarterly report warned investors there was no assurance a definitive agreement would materialise. CFO Colette Kress reiterated this at a December conference, telling investors that they still had not completed a definitive agreement and characterising the arrangement as remaining at the letter-of-intent stage.Some analysts have raised concerns about the circular nature of the financial arrangement, where Nvidia invests capital into OpenAI, which then uses that same capital to purchase Nvidia's chips and systems. Others estimated the deal could generate up to five hundred billion dollars in revenue for Nvidia, but the company's filing spelled out risks including the fragile architecture of such megadeals.
OpenAI's Pivot to Diversified Funding
As the Nvidia partnership languishes, OpenAI has pivoted toward securing capital from multiple sources. The company is now pursuing a funding round that could reach one hundred billion dollars at a valuation approaching eight hundred and thirty billion dollars.Amazon is in discussions to invest as much as fifty billion dollars, with CEO Andy Jassy leading negotiations directly with Altman. Microsoft, which already holds roughly twenty-seven percent equity in OpenAI, is discussing an investment under ten billion dollars. Japan's SoftBank Group is exploring an additional thirty billion dollar investment, having already become one of OpenAI's largest shareholders with an eleven percent stake.
The Road Ahead
OpenAI reported thirteen billion dollars in revenue last year and anticipates tripling that figure this year. However, the company is projected to lose fourteen billion dollars in 2026 due to the costs of training and operating its AI models. The company is also laying the groundwork for a potential public debut in the fourth quarter of 2026, with informal talks already underway with major Wall Street banks.Published January 31, 2026 at 2:14am
