Nvidia CEO Criticizes OpenAI's Chip Ambitions

Tensions rise as former partners become potential competitors in the lucrative AI chip market.

Feb. 1, 2026 at 7:15am by Ben Kaplan

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Nvidia CEO Jensen Huang has publicly expressed dissatisfaction with OpenAI's strategic decisions, particularly the AI company's exploration of custom chip development initiatives. This marks a rare display of friction between the two firms, which have historically maintained a symbiotic relationship as Nvidia provided the advanced GPU technology powering OpenAI's large language models. The tension stems from OpenAI's efforts to reduce its dependence on Nvidia hardware, mirroring similar moves by tech giants like Google, Amazon, and Meta.

Why it matters

The discord between Nvidia and OpenAI reveals deeper structural shifts in the AI industry, where former partners are becoming potential rivals as they jockey for position in the rapidly evolving and lucrative AI chip market. This dynamic threatens to erode the collaborative ecosystem that has driven the current AI revolution, with implications for the entire technology industry.

The details

Huang's concerns stem from OpenAI's custom chip development initiatives, which could reduce the startup's reliance on Nvidia's H100 and upcoming B100 GPUs. This vertical integration strategy aligns with efforts by other major AI players to develop proprietary AI accelerators and control more of their technology stack. The tension has been exacerbated by OpenAI's partnership with Microsoft, which has invested over $13 billion in the AI company, creating a complex web of relationships where Microsoft both competes with and depends on Nvidia.

  • Nvidia reported $47.5 billion in data center revenue in fiscal 2024, driven primarily by AI workloads.
  • OpenAI's collaboration with Microsoft was announced in 2022.

The players

Jensen Huang

The CEO of Nvidia, the world's most valuable semiconductor company and a dominant player in the AI chip market.

OpenAI

An artificial intelligence research company that has been a key customer and partner of Nvidia, relying heavily on the company's advanced GPU technology to train and deploy its large language models.

Microsoft

A technology giant that has invested over $13 billion in OpenAI, creating a complex relationship where Microsoft both competes with and depends on Nvidia.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

The takeaway

The tension between Nvidia and OpenAI reflects the broader structural shifts in the AI industry, where former partners are becoming potential rivals as they seek to capture more value from the AI stack. This dynamic threatens to erode the collaborative ecosystem that has driven the current AI revolution, with implications for the entire technology industry as it navigates the transition to an AI-centric computing paradigm.