KEY POINTS
- Chief Executive Jensen Huang describes reports of a rift with OpenAI as “complete nonsense.”
- The previously discussed $100 billion figure represents a non-binding ceiling rather than a single commitment.
- Nvidia plans to participate incrementally in OpenAI’s latest funding round with a significant capital injection.
Nvidia Chief Executive Jensen Huang has addressed recent speculation regarding the chipmaker’s financial relationship with OpenAI. Speaking to journalists in Taipei, Huang rejected claims that the partnership had soured or stalled. He emphasized that Nvidia remains fully committed to supporting the artificial intelligence pioneer through substantial new investments.
Recent media reports suggested internal friction at Nvidia over a proposed $100 billion infrastructure deal. These reports claimed that executives questioned OpenAI’s business discipline and growing market competition. Huang dismissed these assertions, calling the idea of a breakdown in relations “nonsense.” He reaffirmed his belief that OpenAI is one of the most consequential companies of the modern era.
The executive clarified the nature of the high-profile $100 billion figure often cited in industry news. He explained that this amount was never a binding, upfront legal commitment. Instead, the number represents a maximum potential investment target that the companies could reach over time. Nvidia intends to evaluate and deploy capital in a step-by-step manner as specific milestones are met.
Nvidia will definitely participate in the current funding round being closed by OpenAI leadership. While Huang did not provide a specific dollar amount for this phase, he indicated it would be significant. He suggested the total contribution could eventually become the largest single investment in Nvidia’s history. This participation underscores the strategic importance of OpenAI as a primary consumer of Nvidia’s high-end hardware.
The collaboration centers on building massive data centers capable of powering next-generation artificial intelligence. The original plan envisioned 10 gigawatts of computing power to train more advanced models. By investing in its own largest customers, Nvidia helps ensure a steady demand for its specialized graphics processing units. This “circular” financing model has become a hallmark of the current AI infrastructure boom.
Market analysts are closely watching these developments as OpenAI prepares for a potential public offering. The startup is reportedly seeking to raise fresh capital at a valuation exceeding $800 billion. Nvidia’s continued backing serves as a major vote of confidence during this critical growth phase. Despite the lack of a single $100 billion contract, the partnership appears to be moving forward under a more flexible structure.
Investors responded to the clarification with a mix of caution and relief. Nvidia’s stock has faced pressure as the market weighs the risks of massive capital expenditures. However, Huang’s proactive stance aims to stabilize sentiment and demonstrate long-term alignment between the hardware leader and the software giant. The focus now shifts to the final closing of the funding round and the deployment of new AI clusters.
