Nvidia CEO Jensen Huang Confirms Major Investment in OpenAI, Though Internal Hesitations Cloud Deal
TAIPEI — In a move that would further cement the symbiotic relationship defining the artificial intelligence boom, Nvidia Corp. (NASDAQ:NVDA) is positioning itself to lead a record-breaking investment into OpenAI, its most pivotal partner and customer. The confirmation came directly from Nvidia's CEO, Jensen Huang, during a press briefing in Taipei, though the precise financial commitment remains undisclosed.
"We will definitely participate in the next round of financing," Huang stated, characterizing the opportunity as "such a good investment." While he clarified the sum would be "significantly less" than $100 billion, the investment is still poised to be the largest of its kind for the chipmaker. The potential deal follows a letter of intent signed by the two companies in September, which outlined a vision for Nvidia to invest up to $100 billion to fund new AI data centers built with its own hardware.
The backdrop for this negotiation is a fiercely competitive funding landscape. OpenAI is reportedly seeking to raise as much as $100 billion in its current round, with Amazon.com Inc. (NASDAQ:AMZN) also in advanced talks to commit up to $50 billion. A major investment from Nvidia would not only provide OpenAI with crucial capital for its staggering compute needs and ambitious research but would also strategically lock in a preferential partnership for Nvidia, ensuring its industry-dominating GPUs remain at the core of OpenAI's infrastructure.
However, the path to a finalized deal is not without obstacles. A Wall Street Journal report last Friday revealed that the investment plans have encountered internal resistance within Nvidia. Some executives and board members are reportedly questioning the scale and strategic necessity of such a massive direct investment, given that OpenAI is already Nvidia's largest customer. This skepticism has introduced a note of caution, potentially stalling or reshaping the final agreement.
Analyst & Investor Commentary:
"This is a logical, if bold, capital allocation," said Michael Chen, a portfolio manager at Horizon Tech Capital. "Nvidia is essentially investing in its own future demand. By funding OpenAI's expansion, they're ensuring the growth of the largest AI workload driver, which runs entirely on their silicon. It's vertical integration through strategic finance."
"The internal doubts are a red flag," argued Sarah Fitzpatrick, a former chip engineer and now a vocal industry commentator. "Why risk shareholder capital on a customer that is desperately trying to reduce its dependence on you? OpenAI is actively designing its own chips and courting other suppliers. This feels like a defensive, fear-driven move to buy loyalty, not a confident investment. Nvidia should focus on innovating, not writing checks to protect its monopoly."
"The sheer size of these funding rounds is breathtaking," observed David Park, a research fellow at the Stanford Institute for Human-Centered AI. "It underscores that the frontier of AI is now gated by computational capital. The partnership between the leading model builder and the leading chip provider is the axis around which the entire industry rotates. Any tension or alignment here will have ripple effects for everyone else."
The outcome of these discussions will significantly influence the strategic trajectories of both companies. For Nvidia, it represents a high-stakes bet on maintaining its centrality in the AI ecosystem. For OpenAI, securing this investment from its key supplier would provide stability and resources but may also deepen a dependency it has signaled a desire to escape. The tech world is now watching to see if enthusiasm from the top can overcome internal pragmatism to close a deal that could reshape the AI landscape.