Internal questioning leads to negotiations stalling, reports claim NVIDIA Corporation (NVDA.US) has shelved its plan to invest billions in OpenAI.

According to reports, the negotiation between NVIDIA Corporation (NVDA.US) and OpenAI for a potential investment of up to $100 billion has failed, exposing potential differences between the two leading companies in the artificial intelligence (AI) industry. According to sources, internal questioning from some individuals at NVIDIA Corporation has led to a stalemate in the negotiations. It is understood that OpenAI has developed the popular chatbot Siasun Robot&AutomationChatGPT, while NVIDIA Corporation dominates the market for AI processors that power such software. The two companies announced a partnership in September of last year, signing a strategic letter of intent to use the planned $100 billion investment to support new data centers and other AI infrastructure using NVIDIA Corporation components. The goal was to build infrastructure with a computing power of 10 gigawatts, equivalent to the peak electricity consumption of New York City. NVIDIA Corporation issued a statement on Friday stating, "We have been OpenAI's preferred partner for the past 10 years and look forward to continuing our collaboration." The company did not comment on the progress of the negotiations. As of now, OpenAI has not responded to requests for comment. Reports indicate that both parties are reevaluating their partnership, with one possibility being that NVIDIA Corporation will invest hundreds of billions of dollars in OpenAI's current funding round. It is reported that the target size of OpenAI's current funding round is $100 billion. There were reports on Thursday that Amazon.com, Inc. (AMZN.US) is in talks to invest up to $500 billion, with plans to expand their collaboration by providing computing services to the AI startup. NVIDIA Corporation has also made significant investments in other AI companies. Earlier this week, the company announced an additional $2 billion investment in cloud computing service provider CoreWeave (CRWV.US), which is also a customer of NVIDIA Corporation. This type of circular investment pattern, where companies invest in their own products' purchasers, has raised concerns about the sustainability of the AI industry in the market. However, NVIDIA Corporation CEO Jensen Huang is unfazed by such criticisms. Following the announcement of the additional investment in CoreWeave, Huang stated that these investments make up a very small percentage of the total financing needed by the companies. He stated, "Therefore, calling it circular trading is completely unreasonable."