Nvidia Shares Drop After Investment Stalling Report, Despite Huang's Reassurances on OpenAI Partnership
Nvidia shares dipped after reports surfaced that the company’s planned investment in OpenAI had stalled. The news triggered a sell-off in the stock, despite CEO Jensen Huang’s public reassurances over the weekend. Huang denied any dissatisfaction with OpenAI, dismissing the rumors as "nonsense." He reaffirmed Nvidia’s strong commitment to the partnership, stating he has full confidence in OpenAI and its leadership. "I believe in OpenAI, the work that they do is incredible. They are one of the most consequential companies of our time, and I really love working with Sam," Huang said, referring to OpenAI CEO Sam Altman. He confirmed that Nvidia intends to make a major investment in OpenAI, calling it likely the largest in the company’s history. "We are going to make a huge investment in OpenAI. I believe in OpenAI," Huang said, according to reports from Bloomberg. He added that Sam Altman is currently closing the funding round and that Nvidia will be actively involved. Despite these statements, market sentiment turned negative, with investors reacting to speculation that the investment timeline had been delayed or scaled back. The uncertainty surrounding the deal, even if unfounded, was enough to pressure Nvidia’s stock, which had been on a strong upward trajectory this year. The drop highlights how closely investors are watching the relationship between Nvidia and OpenAI, two of the most influential players in the AI revolution. Nvidia’s chips power most of the world’s AI training infrastructure, while OpenAI leads in developing advanced generative AI models. Their partnership is seen as a cornerstone of the current AI boom. Still, Huang’s comments suggest that the investment is not only expected but also a key part of Nvidia’s long-term strategy. The company remains optimistic about the future of AI and its role in driving innovation across industries.
