Nvidia's Jensen Huang dismisses OpenAI deal rumors: 'No drama'

• Nvidia announced a letter of intent in September to invest in OpenAI in tranches, supporting AI infrastructure requiring up to 10 gigawatts of power, though the deal has not been finalized
• OpenAI has been diversifying chip suppliers beyond Nvidia, striking deals with competitors including AMD, Broadcom, and Cerebras to meet demand for products like ChatGPT
• Both CEOs publicly affirmed their partnership, with Altman calling Nvidia's chips 'the best AI chips in the world' and stating OpenAI hopes to remain 'a gigantic customer for a very long time'

Summary

Key Development:

Nvidia CEO Jensen Huang dismissed recent rumors of tension with OpenAI, confirming the chipmaker's investment plans remain "on track" in a CNBC interview. Huang stated emphatically, "There's no drama involved. Everything's on track."

Main Companies:

• Nvidia: Leading AI chipmaker
• OpenAI: AI laboratory seeking major funding
• Competitors mentioned: Broadcom, TSMC, and Cerebras

Investment Details:

• Nvidia confirmed participation in OpenAI's upcoming fundraising round, potentially raising up to $100 billion—described as "the largest private round ever raised in history"
• Original September announcement outlined a letter of intent for Nvidia to invest in tranches, supporting AI infrastructure requiring up to 10 gigawatts of power
• Huang indicated interest in future OpenAI rounds and a potential IPO

Market Context:

Recent Wall Street Journal reporting suggested the September deal announcement remained unfinalized, raising concerns the agreement was superficial. OpenAI CEO Sam Altman has publicly stated chip shortages limit ChatGPT's capacity and revenue potential, prompting partnerships with Nvidia competitors.

Both CEOs publicly reinforced their partnership, with Altman posting on X: "We love working with NVIDIA and they make the best AI chips in the world."

Implications:

The statements aim to reassure markets about the strategic relationship between the dominant AI chip supplier and a leading AI application developer. OpenAI's diversification to multiple chip suppliers reflects supply constraints rather than relationship issues, though competitive dynamics in AI infrastructure remain fluid.