Nvidia (NVDA) Stock Drops as CEO Clarifies OpenAI Investment After Reported Doubts Surface

TLDR

• Nvidia CEO Jensen Huang clarified the company’s proposed $100B investment in OpenAI was never a firm commitment, stating they’ll evaluate funding “one step at a time.”
• The chipmaker announced plans in September 2025 to invest up to $100B progressively in OpenAI to build AI data centers with Nvidia systems.
• A Wall Street Journal report claimed the investment plan stalled after Nvidia insiders expressed doubts and Huang privately criticized OpenAI’s business discipline and competitive challenges.
• Huang dismissed reports of dissatisfaction with OpenAI as “nonsense” and confirmed Nvidia will make a “huge” investment, possibly its largest ever, though well below $100B.
• Concerns have emerged about circular AI investments where tech companies fund businesses that primarily buy their own products, potentially inflating demand artificially.

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.

NVIDIA Corporation, NVDA

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.

Walking Back Earlier Reports

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.

Investment Size Remains Unclear

Huang did not provide a specific dollar amount. He said it would be up to Altman to announce the total being raised.

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.

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