Nvidia President and CEO Jensen Huang speaks to the media as he arrives for a meeting with the Senate Banking Committee on Capitol Hill December 3, 2025 in Washington, DC.
Anna Moneymaker | Getty Images
from Nvidia The stock fell in early trading Monday after reports emerged that the chipmaker’s plans to invest $100 billion in OpenAI had stalled.
Shares of the semiconductor giant were down 1.1% as of 10:19 a.m. ET. Company officials said there was uncertainty about a deal between Nvidia and OpenAI, according to a Wall Street Journal report published Friday, citing people familiar with the matter.
Nvidia announced a agreement with OpenAI in September to build at least 10 gigawatts of computing power for OpenAI, as well as an investment of up to $100 billion.
However, Huang told industry associates late last year that the $100 billion investment was without commitment and not finalized. The longtime CEO also criticized the lack of discipline in OpenAI’s business strategy and shared concerns about competition from companies like The alphabet Google and Anthropic, according to the WSJ report.
Nvidia has been sharing since the start of the year
During the weekend, Huang denied any claims he was unhappy with OpenAI, calling it “nonsense”, but reiterated that the investment would not exceed $100 billion.
“We’re going to invest heavily in OpenAI. I believe in OpenAI, the work they’re doing is incredible, it’s one of the most important companies of our time, and I really enjoy working with Sam,” he said of the OpenAI CEO: Sam Altman.
“Sam is closing the (investment) round and we will absolutely be involved,” Huang added in comments reported by Bloomberg. “We will be investing a lot of money, probably the biggest investment we have ever made.”
Why the stock fell
Sarah Kunst, chief executive of Cleo Capital, told CNBC’s “Worldwide Exchange” on Monday that one source of concern was uncertainty over exactly how much would be invested in OpenAI.
“One of the things I noticed about Jensen Huang was that there wasn’t a strong, ‘It’ll be $100 billion.’ It was, ‘It’ll be big. It’ll be our biggest investment ever. And so I think there are some question marks there… that kind of back-and-forth is not normal between an investor and a startup and manifests itself in the media,’ Kunst added.
Huang reaffirming his commitment to investing in OpenAI and clarifying that this amount will not exceed $100 billion is partly driven by concerns about “circular financing” in AI, Wedbush analyst Dan Ives said in a note Monday.
Circular financing refers to large AI companies investing in each other. Some market observers fear this will obscure the financial picture of how profitable these companies actually are.
“This is partly about negotiations and partly about Nvidia making sure other competitors aren’t fueled by Nvidia’s investments in OpenAI, like Alphabet and many others,” Ives said in the note.
“The godfather of AI, Jensen, knows this, and Nvidia is in a very strong negotiating position and every move they make is heavily scrutinized. Ultimately, Nvidia will make a huge investment in OpenAI, probably close to the $100 billion zip code.
