A proposed $100 billion partnership between OpenAI and Nvidia, once seen as a landmark moment in the AI industry, is now effectively on hold. Despite earlier reports suggesting a sweeping alliance that would have seen Nvidia supply massive amounts of computing power to OpenAI in exchange for significant equity, Nvidia CEO Jensen Huang has privately expressed skepticism about the deal’s finalization. While the two companies continue to maintain a strong and collaborative relationship, the original terms of the megadeal are no longer moving forward. Huang has indicated in internal discussions that the scale and structure of the proposed agreement are unlikely to be realized as initially envisioned. The partnership had been viewed as a pivotal moment in the AI race, potentially reshaping the dynamics between chipmakers and AI developers. OpenAI, which relies heavily on Nvidia’s GPUs to train its large language models, had been looking to secure long-term access to cutting-edge hardware. Meanwhile, Nvidia stood to benefit from a deeper, more strategic alignment with one of the most influential AI labs in the world. However, shifting market conditions, regulatory scrutiny, and evolving internal priorities on both sides have contributed to the deal’s stagnation. The financial terms, particularly the equity component, have proven difficult to reconcile. Despite the setback, OpenAI and Nvidia remain committed to their existing collaboration. They continue to work closely on optimizing AI workloads, advancing chip design, and accelerating the deployment of next-generation models. The relationship remains one of the most important in the AI ecosystem, even if the grand vision of a $100 billion deal has faded. For now, the focus has shifted from a transformative merger of interests to sustained, practical cooperation—underscoring how even the most ambitious tech alliances can be reshaped by real-world complexities.