"Last September, Nvidia ( NASDAQ:NVDA ) and OpenAI lit up the AI world with the announcement of a letter of intent for a "landmark strategic partnership" to deploy at least 10 gigawatts of Nvidia systems, backed by up to $100 billion of progressive investment as capacity came online. The agreement, though, was explicitly non‑binding and was dependent on infrastructure milestones such as data center and power build‑out."
"It also sat alongside a broader web of OpenAI arrangements and talks that, across cloud partners, chipmakers, and financial investors, have been reported to total approximately $1.4 trillion in potential commitments over multiple years. However, The Wall Street Journal yesterday reported that Nvidia's $100 billion plan had stalled amid internal doubts about the size and structure of the transaction and questions about OpenAI's business discipline and competitive risks."
Nvidia and OpenAI executed a non‑binding letter of intent to deploy at least 10 gigawatts of Nvidia systems with up to $100 billion of progressive investment contingent on infrastructure milestones such as data center and power build‑out. Nvidia's proposed $100 billion deployment stalled amid internal doubts about transaction size and structure and concerns about OpenAI's business discipline and competitive risks. OpenAI maintains a dense network of megadeals across multiple partners, including multiyear commitments with Microsoft Azure, Amazon AWS, Oracle's Stargate‑linked capacity, and CoreWeave, together amounting to roughly $1.4 trillion in potential commitments. Critics note potential circular financing and systemic interdependence across these arrangements.
Read at 24/7 Wall St.
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