Nvidia’s Huang says pledge to invest $100 billion in OpenAI was ‘never a commitment’
Nvidia Corp. Chief Executive Officer Jensen Huang stated that the company’s proposed $100 billion investment in OpenAI was “never a commitment” and that Nvidia would evaluate any funding rounds “one at a time.”
“It was never a commitment,” Huang told reporters in Taipei on Sunday. “They asked us to invest up to $100 billion, and of course, we were very happy and honored by the invitation, but we’ll invest incrementally.”
As part of an agreement signed in September, Nvidia said it intended to invest up to $100 billion in OpenAI to support new data centers and other artificial intelligence infrastructure. The deal aimed to help OpenAI construct data centers with a power capacity of at least 10 gigawatts — matching New York City’s peak electricity demand — outfitted with Nvidia’s advanced chips for training and deploying AI models.
The Wall Street Journal reported Friday that the September investment plan had stalled following doubts from some within Nvidia. Citing unnamed sources familiar with the situation, the Journal said Huang had privately stressed the $100 billion agreement was nonbinding, privately criticized what he called a lack of discipline in OpenAI’s business strategy, and voiced concerns about competition.
When questioned Saturday about the report implying he was dissatisfied with OpenAI, Huang said, “That’s nonsense.”
“We will put in a significant amount of money,” Huang told reporters at that time. “I have faith in OpenAI. Their work is extraordinary. They’re one of the most impactful companies of our era.”
Huang didn’t specify the exact amount Nvidia might contribute but called the investment “huge” and possibly “the largest we’ve ever made.” He noted that Nvidia’s participation in OpenAI’s current funding round wouldn’t come close to $100 billion.
When asked if the companies’ plan to roll out the first gigawatt under their joint investment was on track, Huang said Sunday that “it’s up to OpenAI.”
“It’s their infrastructure,” he told reporters.
Nvidia’s plans to invest in OpenAI — a major purchaser of its advanced AI chips — have raised concerns over the past year about the circular nature of AI deals. Investors are growing more skeptical of how these partnerships — where tech firms invest in AI businesses that buy their products — might be artificially boosting demand. In another similar deal, Nvidia recently revealed plans to invest an extra $2 billion in CoreWeave Inc., a cloud computing provider that’s also a key customer.