Nvidia clarifies OpenAI investment as shares find support
CEO says $100B figure was never binding, easing concerns over massive capital commitment
Nvidia Chief Executive Officer Jensen Huang has moved to clarify the company's investment plans in OpenAI, stating that a widely reported $100 billion figure was "never a commitment" while reaffirming his intention to make what would be Nvidia's largest ever investment in the artificial intelligence company.
Huang's comments, made on February 1, 2026, came in response to reports that a preliminary investment agreement signed in September had stalled. The CEO said OpenAI had invited Nvidia to invest up to $100 billion, but the chipmaker would proceed "one step at a time" with an incremental approach that would not reach or approach that figure. Investment amounts are expected to be in the tens of billions rather than the originally mooted $100 billion.
The clarification removes uncertainty about a potentially massive capital outlay that would have represented a substantial portion of Nvidia's resources. The original memorandum of understanding had envisioned building data centers with capacity of at least 10 gigawatts of power—equivalent to New York City's peak electricity demand—equipped with Nvidia's advanced chips for AI model training and deployment.
Nvidia shares traded down 0.7% to $191.13 on January 31, 2026, reflecting some market sensitivity to the evolving partnership details. The stock has declined 2.48% over the past four weeks but remains up 59.18% over the last 12 months, trading near its recent high of $212.19 reached in October 2025. The company's market capitalization stands at approximately $4.65 trillion.
Despite the scaled-back investment figure, analysts maintain a largely positive outlook on Nvidia. Of 64 analysts covering the stock, 54% rate it a "Strong Buy" and 41% a "Buy," according to recent analyst surveys. Wolfe Research increased its price target to $275 on February 1 with an "outperform" rating. The consensus analyst target price is $253.19, suggesting upside potential from current levels.
Some analysts view the revised investment approach as a positive development, characterizing it as strategic risk mitigation rather than a sign of deteriorating relations. Reports of internal reservations at Nvidia, including concerns about OpenAI's business discipline, had contributed to uncertainty around the original $100 billion proposal. Huang dismissed earlier reports of a strained relationship or stalled deal as "complete nonsense," emphasizing OpenAI's strategic importance.
Nvidia's fundamental performance remains robust. The company reported quarterly revenue growth of 62.5% year-over-year, with trailing twelve-month revenue of $187.1 billion. Profit margins remain strong at 53%, and the stock trades at a forward price-to-earnings ratio of 29.94, well below its trailing multiple of 47.66.
Investors are now focused on Nvidia's upcoming earnings report, scheduled for February 25, 2026. Analysts expect earnings per share of $1.52. The results will provide insight into whether concerns about an "AI spending bubble" and geopolitical factors affecting sales to China are impacting business momentum.
The OpenAI investment clarification comes at a pivotal moment for Nvidia, which has dominated the artificial intelligence chip market but faces increasing competition and questions about the sustainability of AI infrastructure spending. By maintaining a substantial but more measured investment approach, Huang appears to be balancing strategic partnership support with capital discipline—a combination that may appeal to institutional investors wary of overexposure to any single AI partnership.