Dec 2 (Reuters) – Nvidia’s (NVDA) agreement with ChatGPT parent OpenAI (OPAI.PVT) to invest up to $100 billion in the startup has not yet been finalized, the chipmaker’s Chief Financial Officer Colette Kress told the UBS Global Technology and Artificial Intelligence Conference in Arizona on Tuesday.
Kress’s comments intensify the heated discussion surrounding the partnership between two of the most important players in the artificial intelligence race and are at the center of growing concerns about circular transactions in the artificial intelligence ecosystem.
The world’s most valuable company announced a letter of intent to invest in OpenAI in September. Under the agreement, the startup will deploy at least 10 gigawatts of Nvidia systems, enough to power more than 8 million U.S. homes.
“We haven’t finalized the agreement yet, but we are working with them,” Kress said in response to a question about the framework of Nvidia’s agreement with OpenAI.
OpenAI, a startup at the center of the generative AI boom that kicked off with the launch of ChatGPT in late 2022, is a major customer of Nvidia chips and a large cloud provider that accounts for a large portion of the chipmaker’s sales.
Nvidia CEO Jensen Huang said the company’s advanced chip orders will reach $500 billion by 2026.
Kress said Tuesday that the chips Nvidia can provide to OpenAI are not included in those pre-orders and will increase that amount after the deal is finalized.
“This $500 billion does not include any work we are currently doing on the next part of the agreement with OpenAI,” she said.
Nvidia shares rose 2.6%.
Over the past year, Nvidia has struck a series of deals with artificial intelligence startups and made investments in companies that are also major customers, stoking Wall Street concerns about an AI bubble and so-called cycle deals.
Nvidia last month announced plans to invest up to $10 billion in OpenAI rival Anthropic. The Anthropic deal could also add $500 billion to Nvidia’s chip orders, Kress said.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Tasim Zahid)
