OpenAI Seeks Alternatives to Nvidia Chips Amid Inference Needs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 03 2026
0mins
Source: seekingalpha
- Dissatisfaction with Nvidia: OpenAI has expressed dissatisfaction with Nvidia's latest AI chips since last year, particularly regarding inference performance, prompting a search for alternatives that could challenge Nvidia's dominance in the inference market.
- Stalled Investment Plans: Nvidia's intention to invest up to $100 billion in OpenAI has stalled due to doubts from insiders about the agreement, potentially impacting the long-term partnership between the two companies.
- Deepening Technical Collaboration: Despite OpenAI's concerns about Nvidia's hardware speed, it continues to rely on Nvidia GPUs for the majority of its inference computing, highlighting the foundational and deep nature of their collaboration.
- Intensifying Market Competition: OpenAI has inked deals with companies like AMD to develop chips with higher memory to meet inference demands, which may intensify competition with Nvidia and affect its market share.
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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: 223.470
Low
200.00
Averages
264.97
High
352.00
Current: 223.470
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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- Demand Growth Expectations: Huang noted that although Nvidia has sold out its entire 2026 supply of cloud GPUs, he anticipates demand will continue to grow in a “parabolic” manner, implying sustained increases in demand for AI processors, which may attract investor attention.
- Investment Opportunity: If Huang's predictions hold true, the growth potential for Nvidia and other AI-related stocks will far exceed current valuations, prompting investors to consider entering the market before prices rise further to capitalize on this potential investment opportunity.
See More
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- Continued Growth Momentum: Despite changing market conditions, Nvidia shows no signs of slowing down, indicating strong product demand that may attract more investor interest.
- Increased Investor Confidence: With steady revenue growth, analysts maintain an optimistic outlook on Nvidia's future performance, suggesting that its stock holds significant investment value in the current market.
- Broad Market Prospects: Nvidia's impressive earnings report not only reflects its leadership in the technology sector but also provides funding support for future expansion and innovation, further solidifying its market share.
See More
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See More
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See More
