Nvidia (NVDA) Stock: CEO Walks Back $100B OpenAI Investment Commitment

TLDR

• Nvidia CEO Jensen Huang said the chipmaker’s proposed $100B OpenAI investment was never a binding agreement and will proceed incrementally.
• Huang dismissed Wall Street Journal reports claiming he criticized OpenAI’s business discipline and expressed doubts about the partnership.
• The CEO confirmed Nvidia will participate in OpenAI’s current funding round with what he called the company’s “largest investment ever,” though far below $100B.
• Questions persist about circular AI investments where companies fund businesses that purchase their own products.
• Huang deferred timeline questions to OpenAI, stating deployment schedules depend on the ChatGPT maker’s infrastructure decisions.

Nvidia CEO Jensen Huang clarified the company’s investment strategy with OpenAI during weekend remarks in Taipei. The statements followed reports suggesting internal tensions over a previously announced $100 billion partnership.

NVIDIA Corporation, NVDA

Huang told reporters Sunday that Nvidia’s September 2025 announcement wasn’t a firm commitment. “It was never a commitment,” he explained. “They invited us to invest up to $100 billion and of course, we were very happy and honored that they invited us, but we will invest one step at a time.”

The original plan outlined progressive funding to build and deploy at least 10 gigawatts of AI data centers using Nvidia hardware.

Reports of Internal Doubts

The Wall Street Journal reported Friday that the investment plan had stalled. Sources claimed Nvidia insiders questioned the agreement’s terms. The report said Huang privately told associates the $100B figure was non-binding and incomplete.

According to the WSJ, Huang also criticized OpenAI’s business approach as undisciplined. He allegedly raised concerns about competition from Google and Anthropic, both backed by major tech players.

Huang forcefully rejected these characterizations. “That’s nonsense,” he said Saturday when questioned about supposed dissatisfaction with OpenAI.

“We will invest a great deal of money,” Huang stated. “I believe in OpenAI. The work that they do is incredible. They’re one of the most consequential companies of our time.”

Investment Details Remain Vague

The CEO confirmed Nvidia’s participation in OpenAI’s ongoing funding round. “Sam is closing the round and we will absolutely be involved,” Huang said, referencing OpenAI CEO Sam Altman.

Huang characterized the planned investment as “huge” and potentially Nvidia’s largest single investment. However, he made clear it won’t reach $100B. When pressed on the exact amount, Huang said, “No, no, nothing like that.”

He left specific figures to Altman to announce.

Circular Investment Concerns

The Nvidia-OpenAI arrangement has drawn scrutiny from market observers. OpenAI purchases Nvidia’s advanced AI chips, creating a circular investment pattern that some analysts find problematic.

The dynamic raises questions about artificial demand inflation. When tech companies invest heavily in businesses that primarily buy their products, it complicates genuine market assessment.

Huang addressed deployment timelines by passing responsibility to OpenAI. When asked if the first gigawatt deployment remains on schedule, he said, “It’s up to OpenAI. It’s their infrastructure.”

Neither company responded to Seeking Alpha’s requests for comment following Huang’s weekend statements.