Nvidia and OpenAI Grapple with Stalled $100 Billion Deal

Despite reported friction, the AI giants still need each other to drive growth and innovation.

Published on Feb. 3, 2026

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Five months after Nvidia and OpenAI announced a historic $100 billion partnership, the deal remains unsigned and no money has changed hands. While some within Nvidia have expressed doubts about OpenAI's business model, the two companies are still deeply intertwined and reliant on each other's success. Nvidia CEO Jensen Huang and OpenAI CEO Sam Altman have both downplayed any tension, but the companies' diversification efforts with each other's rivals have raised questions about the future of their relationship.

Why it matters

The potential Nvidia-OpenAI deal was seen as a landmark moment for the booming AI industry, with the potential to reshape the competitive landscape. The stalled negotiations have fueled uncertainty about the future of this critical partnership, which underpins the rapid growth and innovation in generative AI technologies like ChatGPT.

The details

The Wall Street Journal reported that the negotiations between Nvidia and OpenAI were "on ice" after some within Nvidia expressed doubts about OpenAI's business model. However, both companies have publicly downplayed any friction, with Nvidia CEO Jensen Huang stating there is "no drama" in the relationship. Despite this, the companies have been diversifying their partnerships, with Nvidia investing in rivals like Anthropic and OpenAI announcing deals with AMD, Broadcom, and Cerebras.

  • In September 2025, Nvidia CEO Jensen Huang and OpenAI CEO Sam Altman announced a $100 billion deal.
  • In November 2025, Nvidia warned in its quarterly filing that there was "no assurance" it would enter into a definitive agreement with OpenAI.
  • In January 2026, OpenAI said it was on track to reach $20 billion in annual sales, but analysts don't project it to turn profitable until 2030.

The players

Nvidia

An American technology company that designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market.

OpenAI

An artificial intelligence research company founded in 2015, known for developing large language models like ChatGPT that have transformed the field of generative AI.

Jensen Huang

The co-founder and CEO of Nvidia.

Sam Altman

The CEO of OpenAI.

Sachin Katti

An executive at OpenAI who oversees the company's infrastructure.

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What they’re saying

“We are looking forward to Sam closing it and he's doing terrifically. And we will invest in the next round. There is no question about that.”

— Jensen Huang, CEO, Nvidia (CNBC)

“We hope to be a gigantic customer for a very long time. I don't get where all this insanity is coming from.”

— Sam Altman, CEO, OpenAI (X)

“Our entire compute fleet runs on Nvidia GPUs. The demand curve is unmistakable. The world needs orders of magnitude more compute.”

— Sachin Katti, Infrastructure Executive, OpenAI (X)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

The stalled Nvidia-OpenAI deal highlights the complex and interdependent relationship between the two AI giants, as they navigate growing competition and the need to secure access to critical computing resources. The outcome of their partnership will have far-reaching implications for the future of the generative AI industry.