Nvidia’s negotiations to invest as much as $100 billion in OpenAI have broken down, exposing a potential rift between two of the most powerful companies in the artificial intelligence industry. The discussions stalled after some inside Nvidia expressed concerns about the transaction. Both the companies announced the agreement in September, saying at the time that they had signed a letter of intent for a strategic deal.
OpenAI makes the popular chatbot ChatGPT, while Nvidia dominates the market for AI processors that help develop such software.
The $100 billion was meant to support new data centres and other AI infrastructure, built with Nvidia components. They were aiming for 10 gigawatts’ worth of computing power — equivalent to the peak electricity demand of New York City.
In a statement to Bloomberg News on Friday, Nvidia said, “We have been OpenAI’s preferred partner for the last 10 years. We look forward to continuing to work together.” The company didn’t discuss the state of negotiations.
It should be noted here that OpenAI has been seeking to raise as much as $100 billion in that round. Amazon.com Inc. is in talks to invest as much as $50 billion and expand an agreement that involves selling computer power to the AI startup, Bloomberg reported Thursday.
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