On January 31, 2026, the global tech industry received major news: NVIDIA CEO Jensen Huang officially confirmed that NVIDIA will participate in a new funding round for AI leader OpenAI. The investment could become the largest single investment in NVIDIA’s corporate history. This statement not only dispels previous market rumors that the two companies’ “$100 billion investment plan” had stalled, but also introduces a new strategic variable into the global AI competitive landscape.
Investment “Far Below $100 Billion,” Yet Still a Record for NVIDIA
Earlier, media outlets including The Wall Street Journal reported that under a framework agreement signed in September 2025, NVIDIA had planned to invest up to $100 billion in OpenAI. However, the plan reportedly stalled due to NVIDIA’s internal concerns over deal size, structure, and OpenAI’s commercial outlook.
In an interview in Taipei, Huang explicitly denied the “$100 billion investment” claim, emphasizing that the actual investment amount is “far lower than $100 billion.” Still, he noted that even at a reduced scale, the deal could become “the largest single investment in NVIDIA’s history.”
According to sources familiar with the matter and multiple media reports, both sides have abandoned the earlier complex model of “bundled computing power plus phased $100 billion investment.” Instead, NVIDIA is expected to make a direct equity investment in OpenAI’s current fundraising round, reportedly in the range of $20–30 billion. While significantly smaller than the original proposal, this figure would still surpass any of NVIDIA’s previous external investments, underscoring its commitment to core AI assets.
From “$100 Billion Power Play” to “Rational Strategic Alignment”
Back in September 2025, NVIDIA and OpenAI had signed a high-profile strategic memorandum of understanding. The plan envisioned phased investments of up to $100 billion to build at least 10 gigawatts (GW) of AI data center capacity for OpenAI, deploying millions of next-generation GPUs. The first phase was scheduled to come online in the second half of 2026 via the Vera Rubin supercomputing platform. At the time, the collaboration was dubbed “the largest computing project in history,” pushing NVIDIA’s stock up nearly 4% in a single day and bringing its market value close to $4.5 trillion.
However, uncertainties were present from the outset. Internally, NVIDIA reportedly questioned OpenAI’s financial condition and commercial discipline. Based on Microsoft’s October 2025 SEC disclosures, OpenAI’s quarterly net loss was estimated at $11.5–12 billion, exceeding its total revenue of $4.3 billion in the first half of 2025. Goldman Sachs and Deutsche Bank projected OpenAI’s cumulative cash burn for 2025–2029 could reach $115 billion. Meanwhile, disagreements over investment terms, computing delivery schedules, and profit-sharing—combined with OpenAI’s massive $1.4 trillion computing procurement commitments—led negotiations into a deadlock.
After restructuring the cooperation model, the strategic synergy between the two firms has become clearer. For NVIDIA, OpenAI is a core GPU customer: about 90% of generative AI applications worldwide rely on OpenAI’s APIs, and the underlying compute is largely powered by NVIDIA chips. Through equity investment, NVIDIA can solidify its 78% dominance in the high-end AI chip market, prevent OpenAI from turning to competitors like Broadcom or AMD, and create a feedback loop of “investment → hardware revenue.” The 10 GW computing project alone could potentially generate $350 billion in hardware revenue for NVIDIA, while equity ownership allows it to share in OpenAI’s long-term growth.
For OpenAI, NVIDIA’s investment is a timely lifeline. OpenAI is pursuing a new funding round of up to $100 billion, which could lift its valuation to $750–830 billion. The capital will mainly fund 30 GW of computing infrastructure, as well as further development and commercialization of GPT-5 and the Sora video model. As of Q2 2025, OpenAI held around $17.5 billion in cash and marketable securities. With a monthly cash burn nearing $1.4 billion, existing funds would not sustain two years of operations without new financing. NVIDIA’s backing not only eases liquidity pressure but also accelerates AGI research via the Vera Rubin platform, which delivers 30 petaflops of NVFP4-precision compute—triple that of current flagship systems.
Tech Giants Converge, Reshaping Global AI Competition
NVIDIA is not the only major player in this funding round. Reports from platforms such as FINVIZ.com and Deepwater Asset Management suggest that Microsoft, Amazon, and SoftBank are also in talks. Microsoft is said to be adding several billion dollars more (having already invested $11.6 billion and fulfilled 89% of its $13 billion commitment). Amazon may invest over $10 billion, while SoftBank is reportedly considering an additional $30 billion. Even so, NVIDIA’s proposed $20–30 billion commitment makes it the largest prospective investor disclosed so far.
Behind this fundraising lies a broader shift in the AI industry—from a focus on technological rivalry to ecosystem competition. Global AI spending in 2026 is projected to reach $2.52 trillion, with NVIDIA, Google, Meta, and Microsoft accounting for more than 62% of capital expenditures, forming a “four-pole” structure. NVIDIA’s move alleviates market concerns about “de-NVIDIA-ization” and could weaken Microsoft’s previously exclusive alliance with OpenAI. By helping OpenAI build computing infrastructure independent of Azure, NVIDIA may significantly enhance OpenAI’s strategic autonomy, enabling its technologies to empower a broader range of tech companies and reshape competitive rules in the AI application market.
Huang has stated, “Computing infrastructure will become the foundation of the future economy.” From early participation in OpenAI’s $6.6 billion round, to committing tens of billions to Anthropic, and now backing OpenAI again, NVIDIA is using capital as a bridge to convert its computing advantage into ecosystem influence. As analysts note, this investment represents Huang’s “firm vote” for the future of AI. As compute giants and model leaders align more deeply, the ceiling of the AI industry continues to rise—an evolution that will profoundly reshape global technological development and human life.
As of now, NVIDIA, OpenAI, and other potential investors have not released further details regarding final amounts, valuation, or deal structure. The industry will be watching closely for updates.
