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The stock market was jolted on Friday following a Wall Street Journal report that Nvidia (NVDA) was reconsidering its massive $100 billion investment in OpenAI. The article highlighted CEO Jensen Huang's private doubts about OpenAI's business discipline and its ability to fend off fierce competition from rivals like Google and Anthropic.

This news sparked broader concerns among investors, questioning whether other major partners – such as Microsoft (MSFT), Amazon (AMZN), and SoftBank – might also pull back, potentially triggering a domino effect that could derail OpenAI's ambitious funding goals and slow the AI sector's momentum.

However, Huang swiftly pushed back during a Saturday press interaction in Taipei, dismissing the claims as "nonsense." He affirmed, "We are going to make a huge investment in OpenAI. I believe in OpenAI, the work that they do is incredible, they are one of the most consequential companies of our time and I really love working with Sam (Altman)...We will invest a great deal of money, probably the largest investment we've ever made."

OpenAI's Massive Capital Raise
 

OpenAI is aggressively pursuing up to $100 billion in new funding to fuel its expansive AI development plans, including massive computing infrastructure buildouts estimated to require trillions in long-term commitments. This round, which could value the company at $750 billion to $830 billion, involves discussions with tech giants like Amazon (potentially up to $50 billion), SoftBank (up to $30 billion more), Microsoft, and Middle Eastern sovereign wealth funds.

Nvidia was initially positioned as a key player, with a September memorandum of understanding outlining up to $100 billion to provide chips and build 10 gigawatts of computing power. But talks have stalled, shifting focus to a smaller equity stake.
 

Huang's comments suggest the investment won't reach that scale, as he explicitly stated, "No, no, nothing like that" when asked about the $100 billion figure. This implies the WSJ report captured some internal hesitations – perhaps over OpenAI's revenue challenges (annualized at $20 billion but with high spending) – without derailing the partnership entirely. Huang may be calibrating his public stance to avoid undermining CEO Sam Altman's fundraising efforts, while still committing substantially to maintain Nvidia's influence in AI hardware supply.

Nvidia's Track Record of Bets
 

Nvidia's history of strategic investments underscores the significance of its OpenAI pledge. Its largest to date is a $2 billion infusion into AI infrastructure provider CoreWeave (CRWV) in January, building on earlier stakes that now give Nvidia about 13% ownership. This deal aimed to accelerate CoreWeave's 5-gigawatt AI data center expansion, reflecting Nvidia's push to secure demand for its GPUs.

Cumulative investments in CoreWeave exceed $5 billion when including prior rounds, but the recent $2 billion tranche stands as Nvidia's biggest single outlay. Nvidia also has commitments with CoreWeave to purchase over $6 billion in cloud services, extending through 2032.

If the OpenAI stake surpasses this – potentially in the tens of billions – it would indeed mark Nvidia's most substantial commitment, bolstering its ecosystem amid booming AI adoption.

Bottom Line
 

Huang has firmly rebutted the more alarmist elements of rift rumors, clarifying that the $100 billion figure was never binding and emphasizing ongoing collaboration. As the AI surge continues, Nvidia remains poised to partner deeply with OpenAI, ensuring mutual growth without overcommitting amid competitive pressures.

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