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Nvidia CEO Fires Back at Reports of Faltering $100 Billion OpenAI Partnership
Nvidia CEO Jensen Huang directly addressed speculation on January 31, 2026, rejecting claims that his company's planned $100 billion investment in OpenAI has stalled. In a pointed response, Huang stated, "We will invest a great deal of money. I believe in OpenAI. The work that they do is incredible. They’re one of the most consequential companies of our time."
The pushback comes after a Wall Street Journal report detailed private concerns from Huang about OpenAI's business strategy and competitors like Anthropic and Google. The article claimed Nvidia is emphasizing the nonbinding nature of a September 2025 memorandum of understanding (MOU), with discussions now focusing on a smaller equity investment in the tens of billions.
Background on the Massive AI Deal
The original MOU, signed in September 2025, outlined Nvidia's intent to build data centers providing 10 gigawatts of compute power for OpenAI to lease, funded by the $100 billion infusion. OpenAI aimed to finalize the deal shortly after, but talks reportedly slowed, prompting investor worries ahead of its planned IPO.
Huang's public affirmation contrasts with private criticisms noted in reports. Nvidia sources indicate both companies are renegotiating terms, but a significant investment remains likely, potentially scaled to tens of billions. This adjustment reflects broader market dynamics, including OpenAI's $100 billion funding ambitions involving Amazon, Microsoft, and SoftBank.
- September 2025: Nvidia and OpenAI sign nonbinding MOU for $100B investment and data centers.
- December 2025: WSJ reports OpenAI's funding round plans.
- January 2026: NYT notes multiple investors in discussions; WSJ claims stall.
- January 31, 2026: Huang publicly recommits amid scaled-back talks.
Implications for AI Hardware and Compute Wars
Nvidia, dominant in AI GPUs, stands to gain immensely from deepening ties with OpenAI, the creator of ChatGPT. A confirmed investment would accelerate OpenAI's scaling of models like GPT-5, reliant on Nvidia's H100 and upcoming Blackwell chips. However, Huang's reported concerns highlight risks: OpenAI's profitability challenges and competition from custom silicon by hyperscalers like Google and Amazon.
Market reactions were swift. Nvidia shares held steady post-Huang's comments, while OpenAI's valuation discussions continue. Analysts view the flexible terms as pragmatic, allowing Nvidia to allocate capital amid surging demand for its AI infrastructure.
This development underscores the high-stakes AI investment landscape. With global data center power demands projected to double by 2030, partnerships like this are pivotal. Nvidia's flexibility could set precedents for future deals, balancing ambition with fiscal caution.
Broader Tech Ecosystem Impact
The saga intersects with other AI funding news. Recent reports confirm Amazon, Microsoft, and SoftBank eyeing OpenAI stakes, signaling a rush to back frontier AI amid U.S.-China chip tensions. For Nvidia, maintaining OpenAI as a key customer bolsters its moat against AMD and Intel in AI accelerators.
Huang's stance also addresses internal pressures. Nvidia faces antitrust scrutiny over its AI dominance, making strategic investments crucial for long-term growth. If finalized even at a reduced scale, the deal would dwarf typical venture rounds, funding OpenAI's pivot toward enterprise AI tools.
Investors watch closely as OpenAI prepares for IPO, where profitability proof becomes essential. Huang's endorsement provides reassurance, potentially stabilizing sentiment. Meanwhile, competitors like Anthropic secure their own funding, intensifying the race for AI supremacy.
What Comes Next?
Expect updates on deal terms within weeks, as both firms align on compute leases and equity. Nvidia's next earnings call may offer more clarity. For OpenAI, securing this capital accelerates superintelligence pursuits, while Nvidia cements its role as AI's infrastructure kingpin.
Huang's January 31 rebuttal shifts narrative from stall to strategic refinement, reinforcing Nvidia's aggressive AI bet despite hurdles. This episode highlights how nonbinding agreements enable agility in trillion-dollar tech shifts.