Nvidia’s proposed investment of up to $100 billion in OpenAI, aimed at supporting the training and operation of its newest AI models, has hit a roadblock amid internal doubts at the chipmaker.

This was disclosed in a report by the Wall Street Journal Friday, according to Reuters.

The company had announced in September that the deal would provide OpenAI with funding and access to advanced chips, crucial for sustaining its lead in the rapidly intensifying AI market.

The Journal, citing sources familiar with the matter, reported that Nvidia and OpenAI are reconsidering the future of their partnership.

Current talks now focus on a potential equity investment of tens of billions of dollars as part of OpenAI’s ongoing funding round.

According to the report, Nvidia CEO Jensen Huang has privately told industry contacts that the original $100 billion deal was non-binding and never finalized.

He has also reportedly criticized what he sees as a lack of discipline in OpenAI’s business operations and expressed concern over competition from companies like Alphabet’s Google and Anthropic.

Additionally, he has reportedly voiced concerns about competition from firms like Alphabet's Google and Anthropic and criticised what he perceives as a lack of discipline in OpenAI's business processes.

For the past ten years, we have been OpenAI's favoured partner. In an email to Reuters, an Nvidia representative stated, "We look forward to continuing to work together."

A request for comment was not immediately answered by OpenAI.

Major investors and IT firms, like as SoftBank Group Corp., are hurrying to collaborate with OpenAI, which is making significant investments in data centers.

Closer relationships with the startup are seen by many as a means of gaining a competitive advantage in the rapidly expanding AI race.