Nvidia’s (NVDA) stock was down about 2% in premarket trading on Feb. 2 amid reports that the chipmaker’s plans to invest $100 billion U.S. into OpenAI are in doubt.
Media reports claim there is growing uncertainty about the previously struck deal between Nvidia and OpenAI.
Nvidia announced last fall an agreement with OpenAI to build at least 10 gigawatts of computing power for OpenAI, as well as invest $100 billion U.S. in the artificial intelligence (A.I.) startup.
However, Nvidia executives are reportedly telling industry associates that the $100 billion U.S. investment in OpenAI is non-binding and not yet finalized, raising doubts that it will happen.
Nvidia Chief Executive Officer (CEO) Jensen Huang is also reportedly criticizing OpenAI’s business strategy, saying it is undisciplined and that the company is burning too much cash.
Media reports also say that Nvidia is concerned about rising competition from Alphabet’s (GOOGL) Google and A.I. startup Anthropic.
Nvidia is trying to counter the media reports, saying claims there are concerns about OpenAI are “nonsense.”
Still, Nvidia also made a point to stress that its investment in OpenAI won’t be more than $100 billion U.S.
Concerns about OpenAI’s cash burn rate and its technology have emerged since Google launched its latest large language model, Gemini 3, last autumn.
Gemini 3 is widely viewed as the most advanced A.I. model yet and superior to OpenAI’s technology, changing the narrative around the startup company.
NVDA stock has gained 64% over the last 12 months to trade at $191.13 U.S. per share.
