According to a report by The Wall Street Journal, the proposed $100 billion agreement between Nvidia and OpenAI has effectively been put on hold. Negotiations reportedly never progressed beyond the early stages, despite OpenAI initially expecting to close the deal within weeks of its announcement in September 2025.

Over recent months, Huang has emphasized to industry partners that the original agreement was non-binding. Privately, he is said to have criticized what he views as a lack of discipline in OpenAI’s business approach and expressed concerns about growing competition from Google and Anthropic.

Both companies are now reassessing the future of their partnership, the report says. Recent discussions have reportedly included the possibility of a tens-of-billions-of-dollars equity investment as part of OpenAI’s current funding round.

Warning signs had already emerged in December, when Nvidia CFO Colette Kress confirmed at a conference that no final agreement was in place. Potential revenue from an OpenAI deal was also not included in Nvidia’s projected $500 billion revenue outlook.

Competition from Google and Anthropic adds pressure

While Google’s Gemini app still trails far behind ChatGPT in adoption, it has shown steady growth. At the same time, Anthropic’s AI coding agent Claude Code has increased competitive pressure on OpenAI.

Despite these concerns, Huang reportedly still believes it is strategically important to support OpenAI financially, in part because the startup remains one of Nvidia’s largest customers. If OpenAI were to fall behind other AI developers, it could negatively affect Nvidia’s revenues. In parallel, OpenAI is also working on its own AI chips to reduce reliance on Nvidia.

An OpenAI spokesperson told the Wall Street Journal that the teams are “actively working through the details” of the partnership. A Nvidia spokesperson said the company has been OpenAI’s preferred partner for a decade and looks forward to continuing the collaboration.

Original announcement promised “the largest computing project in history”

In September 2025, OpenAI and Nvidia announced a memorandum of understanding to build at least 10 gigawatts of computing capacity—roughly equivalent to the output of ten nuclear power plants.

Under the plan, Nvidia was expected to invest up to $100 billion to support the financing, while OpenAI would lease the chips. Huang at the time called the initiative “the largest computing project in history.” Nvidia’s stock jumped nearly 4% following the announcement. OpenAI is reportedly targeting an IPO by the end of 2026.