Nvidia $NVDA ( ▼ 2.89% ) is making it clear it does not want its AI future tied too tightly to OpenAI or priced at peak hype.
A report said Nvidia’s plan to invest up to $100 billion into OpenAI has stalled after internal doubts surfaced. While the two companies had outlined a massive compute partnership last year, CEO Jensen Huang emphasized over the weekend that the $100B figure was “never a commitment.” That public clarification sends a strong signal. Nvidia wants flexibility, not dependency.
Paying for Chips Is One Thing. Paying the Hype Premium Is Another.
OpenAI sits at the center of the AI boom, and that comes with a sky high valuation. Writing a nine figure check at those levels would mean accepting thinner returns and bigger downside if competition intensifies or spending cools.
Huang has reportedly raised concerns about OpenAI’s business discipline and the growing threat from rivals like Anthropic and Google. From Nvidia’s perspective, locking in a giant equity position now could look like overpaying at the top of the cycle.
So Nvidia still wants exposure, just not at any price.
Nvidia Wants to Be the Kingmaker, Not the Sidekick
There is also a perception battle happening in the market. Companies seen as overly reliant on OpenAI have been punished by investors, with worries about customer concentration and negotiating leverage. Nvidia does not want to fall into that category.
By stepping back from the $100B narrative, Nvidia reinforces that it powers the entire AI ecosystem, hyperscalers, startups, enterprises, not just one lab. That keeps its strategic position stronger and its story cleaner.
Importantly, Nvidia is not walking away. Huang said the company will “absolutely be involved” in OpenAI’s current round, potentially making one of its largest investments ever. That is support with optionality, not a blank check.
The bottom line. Nvidia still believes in OpenAI and in AI’s long term growth. It just does not want to pay the OpenAI valuation tax to prove it.