OpenAI Explores Chip Alternatives as Reports of Tension with Nvidia Surface
San Francisco, Tuesday, 3 February 2026.
Reports emerging this week indicate OpenAI is actively seeking alternatives to Nvidia’s hardware, citing dissatisfaction with the efficiency of recent chips for specific software development tasks. Despite OpenAI CEO Sam Altman’s public dismissal of these claims on February 3, 2026, sources reveal the company has engaged with competitors like AMD and Groq since late last year. The most critical development is the reported stalling of a massive $100 billion investment partnership between the two firms, suggesting the alliance driving the AI boom may be fracturing. This strategic pivot could threaten Nvidia’s near-total market dominance and signals a broader industry move toward infrastructure diversification to optimize costs and performance.
Stalled Negotiations and Strategic Diversification
Central to the current speculation is the status of a landmark financial agreement initiated in September 2025, where Nvidia intended to invest $100 billion in OpenAI [1]. While this deal was initially expected to close within weeks of the announcement, negotiations have reportedly stalled, leaving the transaction in limbo as of early 2026 [1]. This delay coincides with reports that OpenAI has been actively exploring partnerships with rival chipmakers, including AMD, Cerebras, and Groq, since last year to reduce its dependency on a single supplier [1]. In a strategic counter-move within this shifting landscape, Nvidia executed a non-exclusive all-cash deal to license Groq’s technology in December, shortly after OpenAI held discussions with the startup regarding computing power [1].
Technical Bottlenecks and Market Ripples
The reported friction appears to stem from specific technical inefficiencies rather than general performance issues. Sources indicate that OpenAI is unsatisfied with the speed of Nvidia’s hardware for distinct problem sets, such as software development [1]. Optimizing these workflows is critical for OpenAI’s financial health; as of late December 2025, the company operated with estimated margins of 70%, a figure heavily reliant on inference economics [2]. With Nvidia commanding over 90% of the AI hardware market, any fracture in this relationship could send shockwaves through the broader infrastructure ecosystem [2]. This uncertainty looms over major partners like Oracle, which recently announced plans to raise between $45 billion and $50 billion to fund an AI cloud infrastructure buildout predicated on contracted demand [3].
Executive Reassurances Amidst Uncertainty
Despite the strategic maneuvering occurring behind closed doors, executive leadership at both firms has moved quickly to downplay the narrative of a rift. On January 31, 2026, Nvidia CEO Jensen Huang dismissed reports of tension as “nonsense,” reiterating that the company still plans a significant investment in the AI startup [1]. Following the emergence of new reports on February 2, OpenAI CEO Sam Altman publicly pushed back on February 3, 2026, affirming that the company “loves working with Nvidia” and views them as their most important partner [4]. Altman clarified that while OpenAI hopes to remain a “gigantic customer” for a long time, the exploration of alternatives is a necessary step to meet the industry’s surging demand for compute power [1][4].