Nvidia CEO Jensen Huang rules out $100 billion investment in OpenAI

Nvidia's CEO, Jensen Huang, believes a $100 billion investment in OpenAI is doubtful.

Speaking at a Morgan Stanley event in San Francisco, he expressed that such a sizeable investment in the ChatGPT creator is unlikely, as "they're aiming to go public later this year."

"For everyone's information, we've finalised our agreement, pledging $30 billion to OpenAI," Huang confirmed.

"This could be our last chance to invest in a pivotal firm like this," he remarked.

Previously, Nvidia had considered investing up to $100 billion into OpenAI as part of a collaboration to develop AI infrastructure, which would involve constructing "at least 10 gigawatts" of AI data centers using Nvidia technology.

On Wednesday, Huang mentioned that Nvidia will prioritize providing the immense computing capacity OpenAI requires for training and executing its AI models.

"Revenue will certainly follow," he assured.

He also stated that Nvidia's $10 billion investment in Anthropic, a competitor to OpenAI, "will likely be our final investment as well."

Anthropic, the creator of Claude, is preparing to go public, and investor interest in its stocks is increasing, according to Joseph Alagna, a founding partner at Buttonwood Funds, which is among Anthropic's biggest investors, as reported by Business Insider last month.

Huang's remarks came after speculation arose last month about potential disagreements concerning the multibillion-dollar investment in OpenAI. 

The Wall Street Journal reported some internal concerns among Nvidia executives about the agreement, according to sources.

Speaking with journalists in Taipei in February, Huang dismissed any suggestion of dissatisfaction with OpenAI, calling it "nonsense.” 

He emphasised his strong support for the startup and confidence in Altman’s leadership.

"I have faith in OpenAI. Their work is exceptional," Huang stated, adding that Nvidia plans to "make a substantial investment, probably the largest we've undertaken."

Huang also mentioned in a CNBC "Mad Money" interview last month that he would be open to investing in a future OpenAI IPO.