Nvidia Corporation (NASDAQ: NVDA) experienced a decline in its stock price on Monday after reports surfaced indicating potential challenges in advancing its planned investment in OpenAI, possibly approaching $100 billion. The Wall Street Journal on Friday cited sources knowledgeable about the discussions, revealing unresolved questions about the status of the deal between the semiconductor leader and the AI research company.
In September, Nvidia had announced an arrangement with OpenAI involving the development of a minimum of 10 gigawatts of computing power to support OpenAI’s AI initiatives, alongside contemplation of a substantial investment that could reach up to $100 billion. However, subsequent comments from CEO Jensen Huang to industry contacts reportedly characterized the agreement as non-binding and not sealed, highlighting apprehensions concerning OpenAI’s operational discipline as well as pressures from competitors like Google and Anthropic.
During the weekend, Huang publicly disputed claims suggesting dissatisfaction with OpenAI's conduct, labeling such narratives as “nonsense.” Nevertheless, as reported by CNBC on Monday, he confirmed that the contemplated investment would cap at $100 billion, indicating no plans to exceed that figure.
Over the preceding twelve months, Nvidia's stock has appreciated by approximately 62 percent, a performance that propelled the company to become the first publicly traded entity with a market capitalization surpassing $4.5 trillion in October. This milestone underscores the firm's substantial growth, particularly in sectors connected to artificial intelligence.
In the wake of Nvidia's CEO Jensen Huang’s keynote presentation at CES 2026, market analysts have maintained a positive outlook for the company. Huang emphasized forthcoming next-generation AI hardware and outlined a comprehensive, long-term scaling roadmap designed to meet surging computational demands.
Vivek Arya, an analyst at Bank of America Securities, underscored that announcements at CES demonstrated continued progress in AI scalability, notably with the Vera Rubin platform expected to roll out in the latter half of 2026. This platform is said to incorporate six novel chips, reinforcing Nvidia’s leadership position in AI computing technology.
Arya recommended Nvidia as a “top AI pick,” citing the firm's dominance not only in AI compute solutions but also in networking and systems integration. He also pointed to Nvidia's expansive ecosystem and sustained strong demand for its AI-related products as key contributors to the company’s favorable investment profile.
Further reinforcing the optimistic investor sentiment, Kevin Cassidy of Rosenblatt commented that Nvidia’s CES updates accentuated the nascent stages of AI development, suggesting ample growth potential remains. Cassidy indicated that the industry-wide appetite for enhanced computing capacity and improved performance persists robustly as developers seek better tools for complex AI workloads.
He noted that enhancements in AI efficiency could support earnings growth consistent with the current upward trajectory of Nvidia’s stock prices. Despite the recent stock dip, such analyst perspectives indicate confidence in the company's strategic direction and market positioning.
At the time of publication, Nvidia’s shares were down by approximately 1.36 percent, trading near $188.53, reflecting investor reactions to the mixed news surrounding the OpenAI collaboration and broader market dynamics.
Given Nvidia's pivotal role in supplying AI infrastructure, developments regarding its investments and partnerships, particularly with prominent entities like OpenAI, will remain closely monitored. Maintaining clarity about financial commitments and strategic priorities is crucial amid a competitive landscape where rivals such as Google and Anthropic intensify technology innovation efforts.