NVIDIA is preparing to withdraw 100 billion OpenAI deals, leaving only 30 billion. 🚨

NVIDIA signaled a reduction in investment roles in major AI companies, with its CEO Jensen Huang revealing that the $30 billion investment, or about $951,300 million, in OpenAI could be the "last investment," and that the $100 billion investment plan, or about $3.17 trillion, mentioned earlier, is very unlikely to happen amid market questions about whether this could be a sign of the AI investment bubble.

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Jensen Huang revealed this at the Morgan Stanley Technology, Media and Telecom conference, stating that NVIDIA may delay further investment in AI companies like OpenAI and Anthropic, particularly during which many companies are considering IPO plans, including OpenAI that reportedly targets $1 trillion in company value.

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Jensen Huang previously said last year that NVIDIA intends to invest up to $100 billion in OpenAI, while OpenAI CEO Sam Altman also once indicated that the company may buy AI chips from NVIDIA for the same or more level of total value, leading many parties to see them as a sign of an overheated wave of AI investment.

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After that, OpenAI instead began adjusting its strategy to reduce its dependence on NVIDIA by turning to more AI chip supply chain distribution; whether it was ordering Instinct MI450 chips from AMD, buying chips from Cerebras worth about $10 billion; including a partnership with Broadcom, developing its own AI chips under the "XPU" code name expected to be manufactured with TSMC's 3-nanometer technology, and launching in 2026.

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Despite Sam Altman still acknowledging that NVIDIA's chips remain the best choice in the AI market, the move reflects that OpenAI wants to reduce its dependence on just one chip.

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NVIDIA's recent stance is therefore seen as a sign of rebalancing the AI industry. After a recent period, the company was dubbed the golden pond of the AI industry because it both invested, financed and sold chips to companies on the same systems. However, this investment slowdown may reflect that major players are becoming more cautious with the current hot AI tide.

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Source: notebookcheck

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