Nvidia CEO Directly Refutes Rumors of Halting $100 Billion Investment in OpenAI

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Nvidia CEO Directly Refutes Rumors of $100 Billion OpenAI Investment Halt

  • Jensen Huang Announces Official Position: “Reported Content is Groundless”
  • $100 Billion OpenAI Investment is One of the Largest Deals in the AI Chip Market
  • Re-examining the Nvidia-OpenAI Relationship: Cooperation or Check and Balance?

What Happened?

Nvidia CEO Jensen Huang directly refuted reports that the company’s $100 billion investment in OpenAI had been halted. [TechCrunch]

Previously, some media outlets reported that large-scale investment negotiations between Nvidia and OpenAI were facing difficulties. $100 billion is one of the largest deals in the history of the AI ​​chip market.

Jensen Huang stated in a statement, “The reported content is not true.” Nvidia maintains its position as a major GPU supplier and strategic partner of OpenAI.

Why is it Important?

Frankly, the timing of this rebuttal is interesting. There have been recent reports that OpenAI is in negotiations with Amazon for a $50 billion investment. [TechCrunch]

Personally, I see Nvidia publicly defending its relationship with OpenAI as a signal. This investment is not just about money, as there is speculation that Nvidia’s position in the AI ​​chip market is wavering.

Nvidia has been almost exclusively supplying high-performance GPUs such as the H100 and H200, which are necessary for training OpenAI’s GPT models. If this relationship really falters, it could be an opportunity for competitors such as AMD or Google TPU.

But the problem is that OpenAI needs money right now. ChatGPT’s operating costs run into millions of dollars a day. From Nvidia’s perspective, it can’t afford to lose OpenAI, and from OpenAI’s perspective, it needs to continue receiving GPUs. It’s a mutually dependent relationship.

What Will Happen in the Future?

The actual details of the negotiations between Nvidia and OpenAI have not been disclosed. However, as Jensen Huang has directly refuted the reports, it seems that the relationship will be maintained, at least in the short term.

In the long term, we need to watch for OpenAI’s moves to develop its own AI chips or secure other suppliers. There is also the possibility that Amazon will push its own chips (Trainium, Inferentia) while investing $50 billion.

Nvidia’s stock price has fallen slightly since the report, but its overall AI chip market share is still over 80%. The landscape may not change immediately, but the impact of choices made by large customers like OpenAI on the entire industry is significant.

Frequently Asked Questions (FAQ)

Q: Is the $100 billion investment given in cash?

A: No. Usually, deals of this size are a combination of GPU hardware supply contracts, equity investments, and strategic partnerships. Nvidia supplies OpenAI with $100 billion worth of chips over several years, and in return, receives OpenAI equity or preferential cooperation rights. The actual cash investment amount has not been disclosed.

Q: Does Nvidia support other AI companies besides OpenAI?

A: Of course. Meta, Google, Amazon, and Microsoft all use Nvidia GPUs. However, OpenAI is one of the largest customers using GPUs to train ultra-large models like GPT-4. From Nvidia’s perspective, OpenAI is a technology showcase and a major source of revenue.

Q: Can’t GPT be trained with AMD or other company’s chips?

A: Technically possible. AMD’s MI300X, Google’s TPU, and Amazon’s Trainium are all capable of AI ​​learning. But the problem is the software ecosystem. Nvidia’s CUDA platform has been optimized for over 10 years, and most AI ​​frameworks (PyTorch, TensorFlow) are CUDA-based. Switching to other chips requires code modification, performance tuning, and engineer retraining. It’s a structure that can’t be easily changed.

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