Nvidia shares fell 1.1% in early trading Monday following reports of uncertainty around the company’s planned $100 billion investment in OpenAI. The chipmaker previously agreed in September to build at least 10 gigawatts of computing power for OpenAI alongside the investment.
CEO Jensen Huang clarified over the weekend that the investment would not exceed $100 billion and reaffirmed his confidence in OpenAI’s leadership and work. Huang described the deal as the largest investment Nvidia has ever made, noting the company will remain heavily involved in the AI startup’s funding round.
Analysts cited investor concern over the precise amount and timing of the investment, as well as broader questions about “circular financing” among AI companies. Some market watchers worry that intercompany investments could obscure the profitability of major AI players like Nvidia, OpenAI, Alphabet, and Anthropic.
Despite the short-term stock decline, analysts expect Nvidia’s commitment to OpenAI to proceed near the $100 billion range, potentially strengthening the competitive positions of both companies in the rapidly evolving AI market.
