$100 Billion : Jensen Huang Sets the Record Straight
Alright, we need to talk about the soap opera currently shaking the tech world. Remember the massive $100 billion deal announced last September between Nvidia and OpenAI ? The project was supposed to guarantee OpenAI near-infinite computing power for the next ten years. Well, Jensen Huang, Nvidia's boss, just stepped in with a fire extinguisher to cool everyone down.
The man was blunt in Taipei : the 100 billion was "in no way a commitment". Basically, they received the invitation, they were "honored," but they will invest "incrementally", on a case-by-case basis. In short, Nvidia is not going to empty its bank account all at once for Sam Altman's sake. Especially since rumors in the halls suggest that Jensen isn't too fond of OpenAI's lack of commercial discipline and the fierce competition from Anthropic or Google.
« They invited us to invest up to $100 billion and, of course, we were very happy and honored by this invitation, but we will invest incrementally. »
A "Frozen" Deal But Not a Dead One
On paper, it looked beautiful : Nvidia was to build 10 gigawatts of computing power for OpenAI. In exchange, OpenAI would lease the chips over the long term. But right now, it's at a standstill. Why ? Because Nvidia is starting to worry about depending too much on a single client and facing the wrath of antitrust authorities. Imagine the cocktail : the king of chips (80 % of the market) partnering with the king of AI... that's bound to raise eyebrows in Brussels and Washington.
⚠️ Nvidia is now examining each fundraising round "on a case-by-case basis". Gone is the $100 billion blank check, replaced by strategic caution.
Consequently, they are shifting gears. We are no longer talking about 100 billion at once, but a capital investment of "a few" tens of billions in the current funding round. This allows them to stay friends without getting married forever. Meanwhile, Amazon is lurking and could inject 50 billion to grab a slice of the pie.
GPT-5 : The Beast is Unleashed
While the bosses are counting their pennies, OpenAI has gone all out with GPT-5. And this time, it's serious. We're talking about a context window of 1 million tokens. To give you an idea, you can feed it ten novels or the entire source code of a massive project, and it analyzes everything instantly.
The test scores are out of this world : 92 % on the general knowledge test (MMLU) and 95 % in programming. The thing is "native multimodal", meaning it processes text, images, sound, and video simultaneously without lagging. And the craziest part ? They are slashing prices : -40 % on rates to try and kill off the competition (Claude 4 and Gemini Ultra 2).
💡 OpenAI's Ambition : Sam Altman remains cautious about AGI and speaks for now of "emergent capabilities" rather than Artificial General Intelligence. But Goldman Sachs analysts are already looking ahead : "Generative AI could account for 30 % of Microsoft's cloud revenue by 2028".
Final Word
Microsoft is laughing in the background (their stock rose 8 %) because they own almost half of OpenAI. But for Nvidia, the message is clear : "I believe in OpenAI. Their work is incredible. This is one of the most influential companies of our time", declares Jensen Huang, but we're going to keep an eye on our wallet.
💾 When asked about his supposed anger toward Sam Altman's company, Jensen Huang simply replied it was "absurd". Nvidia's spokesperson drove the point home : "We have been OpenAI's preferred partner for 10 years. We look forward to continuing our work together".
We are in the middle of a price and data center war. OpenAI is aiming for a valuation of $830 billion (yes, you read that right), but with Nvidia playing it safe, the AI landscape could be more fragmented than expected.
What about you ? Are you Team Cautious Nvidia or Team Ambitious OpenAI ? Tell us everything in the comments !
