Nvidia shares down after report that its OpenAI investment stalled
Nvidia President and CEO Jensen Huang speaks to the media as he arrives for a meeting with the Senate Banking Committee on Capitol Hill on December 3, 2025 in Washington, DC.
Anna Money Maker | Getty Images
Nvidia’s The stock fell in early trading Monday after reports emerged that the chipmaker’s plans to invest $100 billion in OpenAI had stalled.
Shares of the semiconductor giant were down 1.1% as of 11:18 a.m. ET. Company insiders said there was uncertainty about a deal between Nvidia and OpenAI, the Wall Street Journal reported Friday, citing people familiar with the matter.
Nvidia announced a deal with OpenAI in September to invest at least 10 gigawatts of computing power and up to $100 billion for OpenAI.
However, Nvidia’s CEO Jensen Huang told industry partners late last year that the $100 billion investment was not binding and had not been finalized. The longtime chief also criticized OpenAI’s lack of discipline in its business strategy and shared concerns about competition from companies such as: alphabet According to the Journal’s report, Google and Anthropic.
Nvidia shares from the beginning of the year to today
Over the weekend, Huang dismissed claims that he was unhappy with OpenAI as “nonsense” but reiterated that the investment would be no more than $100 billion.
OpenAI CEO Sam Altman said: “We’re going to make a big investment in OpenAI. I believe in OpenAI, the work they do is incredible, it’s one of the most important companies of our time, and I really love working with Sam.”
“Sam is closing (the investment round) and we will definitely be involved,” Huang added in comments quoted by Bloomberg. “We’re going to invest a huge amount of money; probably the biggest investment we’ve ever made.”
Why did the stock fall?
Sarah Kunst, managing director of Cleo Capital, told CNBC:Uncertainty about the exact amount to be invested in OpenAI is a cause for concern, Worldwide Exchange said in a statement on Monday.
“One of the things I noticed about Jensen Huang was that he didn’t have a strong sense of ‘It’s going to be $100 billion.’ It was ‘It’s going to be big.’ This is going to be our biggest investment ever.” And so I think there are some question marks… it’s not normal for this kind of back and forth between an investor and a startup to be in the media,” Kunst added.
Wedbush Analyst Dan Ives said in a note Monday that Huang reaffirmed his commitment to investing in OpenAI, clarifying it would be no more than $100 billion, was motivated in part by concerns about “cyclical financing” in artificial intelligence.
Circular financing refers to large AI companies investing in each other. Some market watchers worry that this clouds the financial picture of how profitable these companies actually are.
“This is partly a negotiation on Nvidia’s part to ensure that other competitors are not fueled by Nvidia’s investments in OpenAI from the likes of Alphabet and others, and partly on Nvidia’s part,” Ives said in his note.
“The godfather of AI Jensen knows that he and Nvidia are in a very strong negotiating position, and every move they make is highly scrutinised. At the end of the day, Nvidia will make a massive investment in OpenAI, probably close to the $100 billion zip code… which will both significantly benefit tech proponents and help address lingering concerns around the ‘too big to fail’ OpenAI narrative among bears/skeptics,” Ives added.
