In a high-profile appearance at an event this past weekend, Nvidia (NVDA) CEO Jensen Huang became the center of attention by publicly announcing that the chipmaking giant will participate in OpenAI’s latest funding round—a move he suggested could become “the largest investment we’ve ever made.”
“We will invest a great deal of money,” Huang told reporters. “I believe in OpenAI. The work that they do is incredible. They’re one of the most consequential companies of our time.” While he stopped short of disclosing a specific figure, he repeatedly described the planned commitment as “huge.”
The statement comes amid market speculation that a previously reported $100 billion partnership between Nvidia and OpenAI might be faltering. The Wall Street Journal recently cited sources familiar with the matter who suggested Nvidia was reconsidering the scale of the investment, noting the deal was “nonbinding.”
When asked about that report, Huang dismissed it outright: “That’s nonsense.” Queried on whether the investment would reach $100 billion, he replied, “No, no, nothing like that.” His latest remarks serve as a strong, public reaffirmation of Nvidia’s commitment to the high-stakes collaboration.
This intended investment marks the latest step in deepening the ties between the two companies. Last September, they announced a “landmark strategic partnership” under which OpenAI would deploy at least 10 gigawatts of AI data center capacity using millions of Nvidia’s next-generation Vera Rubin GPUs. At the time, Nvidia indicated its total investment in OpenAI could incrementally reach up to $100 billion as each gigawatt of capacity comes online.
OpenAI is currently in talks to raise as much as $100 billion from several deep-pocketed investors, including Microsoft, Amazon, and SoftBank. This funding round could value the AI pioneer at approximately $750 billion, positioning it among the world’s most valuable private companies.
The Nvidia-OpenAI relationship exemplifies the so-called “circular deal” model prevalent in today’s AI sector: OpenAI builds its computational infrastructure using Nvidia’s chips, while Nvidia commits vast capital to OpenAI. While this symbiosis fuels explosive industry growth, it has also raised investor concerns about whether such arrangements might artificially inflate demand.
As an early investor, Nvidia’s stake in OpenAI could prove highly lucrative. Recent reports suggest OpenAI is considering an initial public offering later this year. AI-related stocks often trigger market enthusiasm upon debut—for instance, cloud provider CoreWeave has surged more than 125% since its March 2025 IPO. However, startup success is never guaranteed. Nvidia has invested in several AI startups in the past only to later divest its positions. For outside investors, too many unknowns remain to draw definitive conclusions about this particular bet.
On the other hand, Nvidia itself appears favorably valued, with a price/earnings-to-growth (PEG) ratio of 0.8—a figure below 1 typically suggests a stock is undervalued. Given the company’s current and projected growth trajectory, its shares continue to present an attractive opportunity.
Regardless, Jensen Huang’s vocal and unequivocal endorsement sends a clear signal to the market: Nvidia remains fully committed to betting on the forefront of artificial intelligence. This potential “largest investment ever” is not merely about capital allocation—it reflects a profound belief in the future trajectory and power dynamics of the AI industry.
