Discussions between Nvidia Corp and OpenAI regarding a possible investment of as much as $100 billion have fallen through, creating uncertainty about the future of one of the most ambitious collaborations in the artificial intelligence (AI) industry, according to reports.

Discussions halted following internal concerns at Nvidia regarding the size and setup of the agreement, as reported by individuals familiar with the situation.

The two firms revealed in September that they had entered into a letter of intent for a strategic alliance focused on financing extensive AI infrastructure, which features data centres running on Nvidia chips.

The suggested investment aimed to back up to 10 gigawatts of computing power — approximately equal to New York City’s highest electricity demand. Nvidia, the leader in the AI processor sector, and OpenAI, the creator of ChatGPT, are currently reevaluating their collaboration, according to WSJ.

Nvidia stated that it continues to be OpenAI’s “preferred partner” and anticipates ongoing collaboration, but did not provide details about the status of the discussions. OpenAI did not reply to requests for commentary.

The WSJ indicated that Nvidia might still allocate tens of billions of dollars to OpenAI in its ongoing funding round, potentially raising to $100 billion. Amazon.com is in talks to invest as much as $50 billion while enhancing its cloud computing partnership with the AI startup.

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Nvidia has maintained significant investments throughout the AI ecosystem, including a newly announced US$2 billion stake in cloud provider CoreWeave, a key client, a strategy that faces examination regarding the viability of the AI surge but is backed by Nvidia CEO Jensen Huang.