Nvidia CEO Jensen Huang addressed confusion surrounding his company’s investment plans for OpenAI during remarks to reporters in Taipei over the weekend. The clarification came after reports suggested internal doubts had stalled a proposed $100 billion partnership.
Huang emphasized that Nvidia’s September 2025 announcement to invest up to $100B in Microsoft-backed OpenAI was never a binding commitment.”It was never a commitment,” Huang told reporters on Sunday. “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 agreement outlined plans to progressively fund and deploy at least 10 gigawatts of AI data centers using Nvidia systems. That announcement sent ripples through the AI industry as one of the most substantial proposed investments in the sector.
A Wall Street Journal report on Friday claimed the investment plan had stalled. The report cited Nvidia insiders who expressed doubts about the agreement’s structure. According to the WSJ, Huang had privately told business associates the original agreement wasn’t binding or finalized.
The report also said Huang criticized OpenAI’s business approach as lacking discipline. He reportedly expressed concerns about competition from Google and Anthropic, which receive backing from Alphabet and Amazon respectively.
Huang pushed back hard against these characterizations. “That’s nonsense,” he said on Saturday when asked about reports suggesting dissatisfaction with OpenAI.
“We will invest a great deal of money,” Huang told reporters. “I believe in OpenAI. The work that they do is incredible. They’re one of the most consequential companies of our time.”
Huang confirmed Nvidia will participate in OpenAI’s current funding round. “Sam is closing the round and we will absolutely be involved,” he said, referring to OpenAI CEO Sam Altman.
The CEO described the planned investment as “huge” and potentially “the largest investment we’ve ever made.” However, he clarified it won’t approach the originally discussed $100B figure. When asked directly if the investment would exceed $100B, Huang responded, “No, no, nothing like that.”
Huang did not provide a specific dollar amount. He said it would be up to Altman to announce the total being raised.
The chipmaker’s CEO also deferred questions about deployment timelines. When asked if plans to deploy the first gigawatt under their joint investment plan remain on schedule, Huang said, “It’s up to OpenAI.” He added, “It’s their infrastructure.”
The investment discussions have raised eyebrows in the financial community. Nvidia sells advanced AI chips to OpenAI, creating what some analysts view as a circular investment pattern.
Investors are questioning whether these arrangements artificially inflate demand. Tech companies investing in AI businesses that primarily purchase their own products creates a feedback loop that complicates valuation assessments.
Neither Nvidia nor OpenAI immediately responded to requests for comment from Seeking Alpha following the weekend remarks.
The post Nvidia (NVDA) Stock Drops as CEO Clarifies OpenAI Investment After Reported Doubts Surface appeared first on CoinCentral.
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