OpenAI and Nvidia's $100 Billion Deal Stalled
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 03 2026
0mins
Should l Buy NVDA?
Source: Newsfilter
- Stalled Agreement: Since the announcement of the $100 billion deal in September, negotiations between OpenAI and Nvidia have made no substantial progress, leading to investor concerns and a decline in Nvidia's market cap from a peak of $5 trillion to $4.4 trillion.
- Mutual Dependence: Despite reported friction, OpenAI relies on Nvidia's AI chips to meet its revenue growth targets, while Nvidia needs customers like OpenAI to drive sales of its expensive systems, highlighting their interdependence in the AI sector.
- Investment and Competitive Dynamics: Nvidia has shown caution in its collaboration with OpenAI, investing in other AI labs and forming partnerships with competitors like Anthropic and AMD, reflecting a strategic shift to diversify its customer base amid high concentration risks.
- Future Outlook and Challenges: OpenAI aims to include Nvidia in its upcoming funding round, yet progress on their infrastructure collaboration remains stalled, with the first phase of investment not expected to commence until the second half of 2026, indicating challenges both companies face in a rapidly evolving market.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 175.750
Low
200.00
Averages
264.97
High
352.00
Current: 175.750
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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