Nvidia CEO Says $30B OpenAI Investment 'Might Be the Last' Before Anticipated IPO
Key Takeaways
- ▸Nvidia's $30 billion investment in OpenAI will likely be its last before OpenAI's anticipated IPO later in 2026
- ▸The previously announced $100 billion infrastructure deal between Nvidia and OpenAI is unlikely to happen due to OpenAI's plans to go public
- ▸Nvidia also plans to end investments in Anthropic after its recent $10 billion commitment
Summary
Nvidia CEO Jensen Huang announced that the company's recent $30 billion investment in OpenAI will likely be its final investment in the AI startup ahead of an anticipated public offering later this year. Speaking at the Morgan Stanley Technology, Media & Telecom Conference on Wednesday, Huang indicated that the previously discussed $100 billion infrastructure deal between the two companies is "not in the cards," primarily because OpenAI is preparing to go public. He also stated that Nvidia's $10 billion investment in OpenAI rival Anthropic would likely be its last investment in that company as well.
The $30 billion investment was part of OpenAI's massive $110 billion funding round announced last Friday, which also included $50 billion from Amazon and $30 billion from SoftBank. As part of the agreement, OpenAI secured significant computing capacity on Nvidia's Vera Rubin systems, including 3 gigawatts of dedicated inference capacity and 2 gigawatts of training capacity. This arrangement differs from the September 2025 deal, which tied Nvidia's investment to deployment milestones as new supercomputing facilities came online.
Huang's comments come after months of uncertainty about the scope of Nvidia's relationship with OpenAI. The chipmaker had previously disclosed in quarterly filings that there was "no assurance" the original $100 billion partnership would materialize, and reports suggested the deal was "on ice." Nvidia has been one of the primary beneficiaries of the AI boom due to its dominant position in manufacturing the graphics processing units that power AI systems. The shift in investment strategy suggests both companies are entering a new phase of their relationship as OpenAI transitions from a privately-held startup to a publicly-traded entity.
- OpenAI's latest funding round totaled $110 billion, with major contributions from Nvidia ($30B), Amazon ($50B), and SoftBank ($30B)
- The new investment secures OpenAI access to 3 gigawatts of inference capacity and 2 gigawatts of training capacity on Nvidia's Vera Rubin AI systems
