The “breakup” was fake news.
Speaking from Taipei on Saturday, Nvidia CEO Jensen Huang forcefully denied reports that the chip giant’s relationship with OpenAI had soured. Calling the rumors “nonsense,” Huang confirmed that Nvidia is proceeding with what will likely be the “largest investment we’ve ever made.”
🗣️ SETTING THE RECORD STRAIGHT:
- The “Rift”: WSJ reported Friday that the deal was stalled due to internal Nvidia concerns over OpenAI’s “lack of discipline.”
- The Response: Huang shut this down: “I believe in OpenAI… they are one of the most consequential companies of our time and I really love working with Sam.”
- The Number: Huang clarified that while the investment is massive, it is “nothing like” the rumored $100 billion figure. (That $100B likely referred to a long-term infrastructure deployment plan, not a single cash check).
🦄 THE VALUATION WAR: OpenAI is currently closing a historic funding round targeting ~$100 billion in total capital at an $830 billion valuation. The cap table is shaping up to be a “Who’s Who” of Big Tech:
- Amazon: Reportedly in talks for up to $50 billion.
- SoftBank: Discussing a $30 billion injection.
- Nvidia: The strategic partner, ensuring the hardware pipeline remains lock-step with Sam Altman’s roadmap.
💡 ANALYST TAKEAWAY: Jensen Huang is a master of ecosystem management. He knows he cannot let a narrative take hold that Nvidia is losing faith in its biggest customer. By clarifying the investment size (less than $100B) but reaffirming the partnership, he is threading a needle: keeping OpenAI close without validating the “circular economy” criticism (where Nvidia invests billions just to have OpenAI buy it back in GPUs). He’s not buying revenue; he’s buying loyalty.
👇 Tech Strategists: With Amazon potentially putting in $50B, does Nvidia need to invest just to keep a seat at the table, or do the chips give them all the leverage they need?