For a while, it seemed like this was the type of deal that was making the headlines. Nvidia, whose chips are driving the big artificial intelligence boom, is reportedly preparing a staggering $100 billion investment in OpenAIChatGPT's parent company. Big money, big ambitions, big future. And then – seemingly out of nowhere – the deal just… wasn't there.
Now reports are emerging that the much-talked-about alliance between the two heavyweights was never a “done deal,” even after months of hype and breathless speculation.
But as The Guardian reports, what many thought was a solid financial commitment was actually much more nebulous – the latest evidence of just how unclear some of the tech industry's biggest promises have turned out to be in the artificial intelligence economy.
The story pulled back the curtain on a financing plan that seemed quite clever – money circulated between companies to buy goods from each other – but perhaps more shaky than virtually anyone wanted to admit.
Here's the uncomfortable question that's starting to be asked: Was this ever the real deal, or was it just a confidence-boosting ploy that has now lost its appeal?
Nvidia informed people about this matter he began to hesitate about the size and possible structure of the proposed investment, repulsing it internally even though the outside world assumed everything was ready.
And when Reuters investigated further, the news was stark: plans had hit a wall, and enthusiasm within Nvidia was much weaker than the hype suggested.
A little more space and it looks like more than one transaction went wrong. It comes at a time when investors have begun to curb AI enthusiasm.
The stock market may still be peaking, and many economists see fatigue beneath the surface – higher costs, uncertain returns and a growing suspicion that not every bet on AI may pay off forever.
Bloomberg recently noted that the investor “scandal” with artificial intelligence has not died down yet, but the phase of easy money may already be over.
The awkwardness that elevates this saga is human. Nvidia CEO Jensen Huang is said to have been much less impressed with OpenAI's business model than his public appearances might suggest.
He is known to have expressed concerns behind closed doors about execution, costs and whether the economics would actually work.
This tension has been simmering beneath the surface for some time, although industry observers have pointed out that flashy AI demonstrations do not guarantee business profitability.
Technical reporting What goes into this internal dynamic paints an image of caution going hand in hand with ambition.
(If this all seems vaguely familiar, that's because it is). Economists and technology critics are raising the alarm that parts of the AI boom resemble bubbles that have passed – overhyping, circular investing, the assumption that growth will continue to outpace costs.
Others argue that the U.S. economy is relying too heavily on AI scaling as a silver bullet solution, without adequately answering the question of who will actually benefit when the dust settles.
This concern has been reflected in broader economic commentary, which has wondered aloud whether intelligence is also being applied to business models.
So where does this leave us? Perhaps with a slightly bruised ego, but perhaps also with a little more realism. The collapse – or quiet fiasco – of the $100 billion mirage doesn't mean artificial intelligence is over.
Not at all. However, it does indicate that the era of unquestioned hype is waning and being replaced by more difficult discussions about value, risk and what is actually sustainable. And honestly? Perhaps this is what the industry needs right now.
