Nvidia Says $100 Billion OpenAI Deal Not Guaranteed to Close

(Seoul=Yonhap Infomax) Ji Yeon Kim – Nvidia Corp. (NASDAQ: NVDA), the leading provider of artificial intelligence (AI) chips, stated there is no guarantee that its planned $100 billion investment agreement with OpenAI, the developer of ChatGPT, will be completed.

On the 19th (local time), Nvidia disclosed in its third-quarter earnings report (Form 10-Q) that “there is no assurance that a definitive agreement will be reached with OpenAI, nor with respect to other potential investments,” citing this as a risk factor.

The company further noted, “There is no guarantee that any investment will be completed on the anticipated terms, or at all.”

In September, Nvidia CEO Jensen Huang and OpenAI CEO Sam Altman signed a strategic partnership in San Jose, California.

At that time, Nvidia announced it had signed a letter of intent (LOI) to invest up to $100 billion in OpenAI, with the goal of building data centers with a total capacity of 10 gigawatts (GW) powered by Nvidia chips.

The timeline for data center construction and the cost per center were not disclosed.

CNBC commented that Nvidia’s mention of investment uncertainty in its quarterly report serves as a reminder to investors of the significant gap between announcements and actual contract execution.

Nvidia has been providing financial support to companies purchasing its graphics processing units (GPUs). In addition to OpenAI, Nvidia has pledged to invest $5 billion in Intel Corp. (NASDAQ: INTC) and up to $10 billion in Anthropic.

OpenAI has formed partnerships with multiple companies to expand its AI models and services, announcing a total infrastructure investment plan of $1.4 trillion. However, the majority of these investments rely on external capital.

OpenAI did not provide a separate comment. However, CEO Huang, during the earnings call following the results announcement, described OpenAI as “a once-in-a-generation company” and said the investment would generate extraordinary returns.

jykim@yna.co.kr

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