tech
February 2, 2026
Nvidia shares are down after a report that its OpenAI investment stalled. Here's what's happening
Nvidia's Jensen Huang criticized OpenAI's business strategy as the chip giant plans to invest up to $100 billion into the AI startup, per reports.
TL;DR
- Nvidia's stock fell amid uncertainty about its $100 billion investment in OpenAI.
- Nvidia had previously announced an agreement to build computing power for OpenAI and invest up to $100 billion.
- CEO Jensen Huang had described the $100 billion investment as nonbinding and not finalized.
- Huang reportedly expressed concerns about OpenAI's business strategy and competition from Google and Anthropic.
- Huang denied being unhappy with OpenAI but reaffirmed a substantial investment, possibly the largest ever for Nvidia.
- Analysts cite uncertainty over the precise investment figure and 'circular financing' as reasons for concern.
- Circular financing involves major AI companies investing in each other, raising questions about profitability.
- The investment is seen as a negotiation tactic and a way to prevent competitors from benefiting from Nvidia's funds.
- Analysts expect Nvidia to make a significant investment near the $100 billion mark, benefiting both companies.
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