Nvidia's Jensen Huang denies OpenAI deal rumors: 'There’s no drama'

In a recent interview, Jensen Huang, CEO of Nvidia, reassured investors that the company's plans to invest in OpenAI are firmly on course. This statement comes in response to rumors suggesting tension between the two organizations. "There's no drama involved. Everything's on track," Huang declared during his appearance on CNBC's 'Mad Money'. The partnership was initially highlighted in September when Huang and OpenAI's CEO, Sam Altman, revealed a letter of intent for Nvidia to invest potentially up to $100 billion in OpenAI in phases. This investment supports OpenAI's plans to construct AI infrastructure reliant on Nvidia's technology, which is expected to require significant power supply, approximately 10 gigawatts. However, an SEC filing in November indicated that the deal had not yet been finalized, leading to skepticism about the announcement's authenticity. Reports over the weekend from the Wall Street Journal suggested that the investment was currently stalled. In the wake of these developments, Nvidia's stock experienced a drop of more than 3.4%, contributing to a broader decline in technology shares, with the stock down 13% from its October peak. Despite these challenges, Huang confirmed that Nvidia intends to participate in OpenAI's next fundraising round, which he termed the "largest private round ever raised in history." OpenAI is reportedly looking to secure up to $100 billion in this round. "We will invest in the next round; there is no question about that," Huang stated, emphasizing Nvidia's ongoing interest in future funding opportunities and a potential IPO for OpenAI. Since its inception, OpenAI has relied on Nvidia's graphics processing units for developing and delivering its AI models. However, in recent months, Altman has expressed that OpenAI faces chip shortages affecting product demand, hinting at a need for increased computational power to drive revenue growth. Additionally, OpenAI has been exploring partnerships with Nvidia's rivals, including Advanced Micro Devices, Broadcom, and Cerebras, to address these shortages. Responding to the speculation regarding their collaboration, Altman took to social media, expressing, "We love working with NVIDIA and they make the best AI chips in the world. We hope to be a gigantic customer for a very long time. I don't get where all this insanity is coming from."