Nvidia-OpenAI $100B Deal Stalled Five Months In

Nvidia and OpenAI announced a major partnership five months ago to build huge AI data centers, but no contract has been signed and no money has moved yet. The deal, worth up to $100 billion, aims to deploy 10 gigawatts of Nvidia systems starting in late 2026. Talks continue as both companies face pressure from investors and reports of delays.

Background

Back in September 2025, Nvidia CEO Jensen Huang stood next to OpenAI CEO Sam Altman to reveal plans for one of the biggest tech partnerships ever. They signed a letter of intent for Nvidia to invest up to $100 billion in OpenAI over time. The money would fund data centers packed with millions of Nvidia GPUs to power OpenAI's next AI models.

The setup calls for rolling out systems in phases. The first gigawatt comes online in the second half of 2026 using Nvidia's Vera Rubin platform. Each gigawatt deployed triggers more investment from Nvidia. OpenAI wants this compute power to train models heading toward what they call superintelligence.

Nvidia and OpenAI have worked together for years. OpenAI built early successes like ChatGPT on Nvidia hardware. From the first DGX supercomputers to today's systems used by hundreds of millions, Nvidia chips run OpenAI's breakthroughs. This deal builds on that, with Nvidia as the main partner for OpenAI's growth.

OpenAI now has over 700 million weekly users. Businesses, developers, and everyday people rely on its tools. The company teams up with others like Microsoft, Oracle, SoftBank, and Stargate for infrastructure. But Nvidia stays central because OpenAI tunes its software to Nvidia's hardware.

Key Details

Since the announcement, things have not gone as fast as expected. An SEC filing in November 2025 showed the deal was not final. It was just a letter of intent, not a binding contract. No cash has changed hands.

Reports picked up steam over the weekend. The Wall Street Journal said the deal hit snags. Nvidia wants to cut back to tens of billions in equity, not the full $100 billion. Sources claimed Huang criticized OpenAI's strategy and worried about rivals like Anthropic and Google.

Nvidia shares dropped 3.4% on Tuesday after the news. They fell 1.5% on Monday too. Investors worry the huge investment might not happen. Huang called it the largest private funding round in history, so any delay shakes markets.

Nvidia CEO Responds

Huang pushed back hard. In a CNBC interview with Jim Cramer on Tuesday, he said the reports were wrong.

"There's no drama involved. Everything's on track." – Jensen Huang, Nvidia CEO

He repeated this in Taipei over the weekend. Bloomberg reported him saying Nvidia will join OpenAI's latest funding round because it's a smart move. "We will invest a great deal of money," he added. Huang believes in OpenAI's work and called it one of the most important companies today. He left the amount to Altman to announce.

OpenAI also commented. A spokesperson told the Journal the companies are working through details. Nvidia has powered OpenAI from the start and will stay key as they grow.

Altman has said compute is the base for the future economy. He and Nvidia cofounder Greg Brockman praised the partnership at launch. Brockman noted years of close work leading to tools used by millions daily.

Funding Context

OpenAI seeks $100 billion overall. Reports say Nvidia, Amazon, Microsoft, and SoftBank talk investments. No firm numbers yet. The partnership fits OpenAI's push with many players, but Nvidia leads on hardware.

What This Means

Both sides need each other. OpenAI runs on Nvidia GPUs with few good options to switch. Massive data centers demand Nvidia's speed and scale. Without this deal, OpenAI slows model training and loses edge over rivals.

Nvidia relies on OpenAI too. AI boom drives its sales. OpenAI orders huge GPU batches. A stall hurts Nvidia stock and signals risks in the AI market. Investors watch if the full 10 gigawatts deploy as planned.

Delays come from deal size. $100 billion spread over years ties to power needs and regulatory checks. SEC filings show caution. Both firms adjust terms to fit business shifts.

Markets react fast. Nvidia shares swung on reports, showing investor nerves. If signed soon, it boosts confidence. OpenAI's user growth and enterprise deals keep pressure on to scale compute.

Talks focus on equity now. Nvidia might take a stake instead of pure investment. This aligns interests long-term. Huang's words calm some fears, but no contract means uncertainty lingers.

OpenAI pushes AI for everyone. Nvidia enables that with hardware. A deal keeps them ahead in the race for better models. Partners like Microsoft watch closely as they build similar setups.

Huang stressed joint roadmaps. OpenAI tunes models for Nvidia tech, and Nvidia builds for OpenAI needs. This back-and-forth speeds progress. Even with hurdles, the partnership shapes AI's next phase.

Five months in, the lack of ink on paper raises questions. But leaders from both sides say they move forward. Investors wait for proof in funding announcements and deployments.