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AI chip maker Nvidia has been at the center of a massive AI hype wave that has swept global markets and made it the world’s most valuable company.
Yet despite its dominant presence on Wall Street, OpenAI is facing a lukewarm response to the company’s offerings.
After the $100 billion blockbuster deal was announced in September – which went ahead Concern about passage of AI companies Same money in circular dealmaking – ChatGPT creator may have changed his mind wall street journal informed Last week.
but the formula told reuters The Sam Altman-led organization this week deemed Nvidia’s latest chips inadequate, especially when it comes to AI inference, the process of using machine learning models to generate new data, which has become a major focus for OpenAI.
After months of negotiations, the deal with Nvidia was expected to be completed within a few weeks. Meanwhile, OpenAI has signed Major deal with rival chip maker AMDamong others.
Then, on Tuesday, bloomberg The report said Nvidia was close to a deal to invest $20 billion in OpenAI – a mere fifth of the investment originally on the table.
The collapse of the mega-deal highlights ongoing tensions as U.S. software companies grapple with investors’ cool stance over the AI industry’s massive spending plans. Despite commitments of trillions of dollars to expand AI infrastructure, companies are not expected to see any benefits for many years to come.
Nvidia’s fiasco with OpenAI appears to have hit a nerve, causing the former’s share price to continue its week-long decline, falling by nearly nine percent over the past five days. The company’s shares have fallen by more than seven percent in the last month.
Nvidia CEO Jensen Huang and Altman have both publicly denied that there is any strain in relations between the two companies.
“We love working with NVIDIA and they make the best AI chips in the world. We look forward to being a huge customer for a very long time,” Altman Tweeted after reuters Published its story on Monday. “I don’t understand where all this madness is coming from.”
“We will definitely participate in the next round of financing because it is a very good investment,” Huang said. told reporters over the weekend.
As Ars Technica tellsThe original $100 billion deal for ten gigawatts of compute, something that would require the equivalent of ten nuclear reactors to maintain, was never set in stone, as it was just a letter of intent.
It is certainly possible that the original shape was simply drawn from the air. As Huang told reporters, this amount was “never a commitment.”
“We’re going to make a big investment in OpenAI,” he said. “Sam (Altman) is closing the rounds, and we’ll definitely be involved.”
“We will be investing a lot of money,” he said, arguing that it would be “our biggest investment ever.”
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