Jensen Huang clarifies: The "hundred billion investment" in OpenAI was "never committed," NVIDIA will gradually evaluate
NVIDIA's $100 billion investment in OpenAI is set to change, with Jensen Huang clarifying that it was "never a commitment" and that evaluations will be conducted in phases. Previously, Huang had privately criticized OpenAI for its lack of discipline, and the investment plan has stalled. The cyclical trading model of the chip giant investing in key customers is raising widespread doubts in the market about the authenticity of AI demand
NVIDIA CEO Jensen Huang clarified the nature of the previously announced investment plan of up to $100 billion in OpenAI, stating that it "was never a commitment," and the company will "evaluate each round of financing on a case-by-case basis."
Huang said to reporters in Taipei on Sunday, "This was never a commitment. They invited us to invest up to $100 billion, and of course, we are very pleased and honored to be invited, but we will invest step by step." This statement responds to external doubts regarding the execution of the investment plan.
Earlier, the Wall Street Journal reported on Friday that the investment plan announced in September has stalled, with some people within NVIDIA expressing skepticism about the deal. The report cited insiders saying that Huang had privately emphasized that the $100 billion agreement was non-binding and criticized OpenAI's business approach for lacking discipline.
When asked if the report seemed to suggest he was dissatisfied with OpenAI, Huang stated on Saturday, "That's nonsense," and added, "I believe in OpenAI. The work they are doing is incredible. They are one of the most important companies of our time." Such circular investment arrangements continue to raise market concerns about the authenticity of AI demand.
Non-Binding Nature of the Investment Agreement
According to the letter of intent signed in September, NVIDIA plans to invest up to $100 billion in OpenAI to support new data centers and other AI infrastructure. The agreement aims to help OpenAI build data centers with a capacity of at least 10 gigawatts—equivalent to New York City's peak power demand—and equipped with NVIDIA's advanced chips to train and deploy AI models.
Huang did not specify the exact amount the company might invest but described the investment as "huge." He added that NVIDIA's contribution in the current financing round for OpenAI would not approach $100 billion. Huang stated on Saturday, "We will invest a significant amount of money."
According to the Wall Street Journal citing insiders, Huang had privately emphasized that the $100 billion agreement was non-binding and criticized OpenAI's business approach for lacking discipline, while also expressing concerns about competition. The report stated that some people within NVIDIA expressed skepticism about the deal, leading to the investment plan stalling.
NVIDIA's plan to invest in OpenAI—its key buyer of advanced AI chips—has raised concerns about the circular nature of AI transactions over the past year. Investors are increasingly questioning whether these partnerships—where tech companies invest in AI firms that purchase their products—might artificially support demand. In another similar deal, NVIDIA recently announced plans to invest an additional $2 billion in cloud computing provider CoreWeave Inc., which is also a key customer
