Nvidia's era of massive private investments in AI startups appears to be ending as those companies prepare for public markets. CEO Jensen Huang signaled this week that the chipmaker's recent $30 billion commitment to OpenAI could be its final private bet on the artificial intelligence leader before it goes public.
Speaking at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco on Wednesday, Huang said the opportunity to invest $100 billion in OpenAI, a figure previously discussed as part of a large-scale infrastructure deal in September, is "probably not in the cards." He cited OpenAI's plans to go public, potentially by the end of this year, as the reason for this shift.
The $30 billion investment was unveiled as part of OpenAI's massive $110 billion funding round announced last Friday, which valued the company at $730 billion pre-money. That round also included a $50 billion commitment from Amazon and a $30 billion commitment from SoftBank.
Unlike the September structure where Nvidia's investment was tied to deploying 10 gigawatts of computing power, the latest commitment represents a direct stake in OpenAI's current funding round.
Nvidia had previously disclosed in quarterly filings that the $100 billion deal might not materialize. The Wall Street Journal reported in January that the agreement was "on ice," and similar language appeared again in Nvidia's February filing stating there was "no assurance" that an investment and partnership agreement with OpenAI would be completed.
Huang also indicated that Nvidia's $10 billion investment in OpenAI rival Anthropic would likely be its last. The chipmaker had announced plans to invest in Anthropic alongside Microsoft back in November.
This investment shift comes as regulatory pressures are affecting other aspects of Nvidia's business. The company has reportedly halted production of China-bound H200 chips, according to Financial Times reporting, as regulatory efforts in Washington and Beijing have restricted imports to the Chinese market.
Meanwhile, OpenAI continues dealing with complex government relationships. CEO Sam Altman told employees this week that the Pentagon made clear to the company that it doesn't "get to make operational decisions" regarding how its artificial intelligence technology is used by the Department of Defense.
This followed OpenAI's announcement of its DOD arrangement just days before U.S. and Israeli strikes against Iran began.
"Altman dismissed reports of any rift with Nvidia as 'insanity,' reassuring investors that his company will remain Nvidia's 'gigantic customer' for the long term."
He added that while OpenAI is exploring its own chips, it will continue using a broad mix of hardware including Nvidia's upcoming Vera Rubin platform.
The changing investment market reflects how AI infrastructure funding is maturing alongside the companies building it. As startups like OpenAI and Anthropic approach public markets, their relationships with strategic investors like Nvidia are evolving from venture capital partnerships toward more traditional customer-supplier dynamics.
