Nvidia CEO Jensen Huang just shut down swirling speculation about the chipmaker's high-stakes investment in OpenAI. In an interview with CNBC's Jim Cramer on Tuesday, Huang dismissed reports of brewing tension between the two AI giants, declaring flatly that "there's no drama involved" and the company's plan to invest in OpenAI remains "on track." The statement comes as Nvidia shares tumbled more than 3.4% today, with investors increasingly anxious about the status of what Huang called "the largest private round ever raised in history."
Nvidia CEO Jensen Huang is pushing back hard against reports that the chipmaker's massive investment deal with OpenAI has hit the rocks. Speaking to CNBC on Tuesday, Huang offered his most direct comments yet on a partnership that's become one of the most scrutinized relationships in tech.
"There's no drama involved. Everything's on track," Huang told Jim Cramer during an interview set to air later on "Mad Money." It's a striking contrast to the picture painted by recent media reports and regulatory filings that have sent investors into a panic.
The tension has been building since September, when Huang appeared alongside OpenAI CEO Sam Altman to announce a letter of intent for Nvidia to invest up to $100 billion in the AI lab. The plan called for OpenAI to build massive AI infrastructure around Nvidia's technology, requiring up to 10 gigawatts of power and representing one of the largest corporate investments in AI history.
But the deal's status quickly became murky. An SEC filing in November revealed the agreement hadn't actually been finalized, raising questions about whether the September announcement was premature. Then over the weekend, the Wall Street Journal reported the deal was "on ice," sending shockwaves through the market.
Nvidia shares are feeling the heat. The stock dropped more than 3.4% on Tuesday, leading a broader selloff in tech stocks, and now sits 13% below its October peak. Investors are clearly spooked by the uncertainty around what would be one of the most significant strategic partnerships in the AI race.
Huang didn't just dismiss the drama - he doubled down on Nvidia's commitment. "We will invest in the next round," he said. "There is no question about that." He's referring to OpenAI's ongoing fundraising discussions for a round that could raise as much as $100 billion, according to CNBC reporting from last month. Huang went further, saying Nvidia would consider investing in any future OpenAI fundraising and wants to participate in an eventual IPO.
The relationship between the two companies runs deep. OpenAI has relied on Nvidia's graphics processing units to build and serve its AI models since the company's founding. Those chips have been the backbone of everything from GPT-4 to ChatGPT, making Nvidia an essential partner in OpenAI's meteoric rise.
But the partnership dynamics are shifting. In recent months, Altman has publicly complained that OpenAI doesn't have enough chips to meet surging demand for products like ChatGPT, saying the company could generate significantly more revenue with increased computing power. That chip shortage has pushed OpenAI to diversify its suppliers, striking deals with Nvidia competitors including Advanced Micro Devices, Broadcom, and Cerebras.
The moves have fueled speculation about whether OpenAI is trying to reduce its dependence on Nvidia - or whether Nvidia is hesitant to deepen its investment in a partner that's increasingly shopping around. Industry insiders point to the competitive pressures both companies face. Nvidia is navigating relationships with multiple AI labs, many of them rivals to OpenAI, while OpenAI is trying to secure chip supply from any vendor that can deliver.
Altman himself jumped into the fray on Monday, posting on X in response to the weekend's reports. "We love working with NVIDIA and they make the best AI chips in the world," he wrote. "We hope to be a gigantic customer for a very long time. I don't get where all this insanity is coming from."
The public displays of affection from both CEOs suggest there's real concern about market perception. With Nvidia's stock under pressure and OpenAI trying to close what Huang called "the largest private round ever raised in history," neither company can afford prolonged uncertainty about their partnership.
What's clear is that the September announcement created expectations that haven't yet materialized into a formal deal. The November SEC filing's cautious language - noting there was "no assurance" the transaction would close - was a red flag for investors who'd assumed the partnership was a done deal. The fact that we're now in February without a signed agreement has only amplified those concerns.
The stakes couldn't be higher. OpenAI is racing to maintain its lead in generative AI while competitors like Google, Anthropic, and others nip at its heels. Access to cutting-edge chips is essential to that effort. For Nvidia, the OpenAI relationship represents not just a massive revenue opportunity but also a strategic foothold with the company that's arguably driven more AI adoption than any other.
Huang's comments on Tuesday are clearly aimed at calming investor nerves and signaling that whatever discussions are happening behind closed doors, Nvidia remains committed to the partnership. But until a formal agreement is signed and disclosed, the market is likely to remain jittery about a deal that's become emblematic of the complex, high-stakes relationships shaping the AI industry's future.
The public reassurances from both Huang and Altman suggest the Nvidia-OpenAI partnership isn't dead, but it's clearly more complicated than the September announcement suggested. With OpenAI pursuing what could be the largest private fundraising round in history and Nvidia trying to maintain its dominance in AI chips amid rising competition, both companies need this relationship to work. But the gap between a letter of intent and a signed $100 billion deal is vast, and until that gap closes, investors will keep watching nervously. What happens next will shape not just these two companies but the broader competitive landscape of AI infrastructure for years to come.
