Nvidia confirmed that its potential investment of up to $100 billion in OpenAI remains under negotiation, with Chief Financial Officer Colette Kress noting that both sides are still working through key details.
During her appearance at the UBS Global Technology and AI Conference, Kress explained that Nvidia and OpenAI are continuing conversations that follow the letter of intent revealed in September.
The preliminary outline centers on deploying a massive 10 gigawatts of Nvidia systems—an amount of computing power roughly equivalent to the electricity needs of more than 8 million households in the United States.
OpenAI already ranks among Nvidia’s most significant clients for cutting-edge AI processors, joining the major cloud platforms that make up a substantial portion of Nvidia’s yearly revenue.
Related story: Nvidia to Invest $100 Billion in OpenAI Amid Expanding AI Partnerships
Ongoing Negotiations and Market Reaction
Kress also pointed out that Nvidia’s publicly reported $500 billion in chip reservations through 2026 does not factor in any prospective demand from a finalized OpenAI arrangement.
Should the two companies ultimately strike an agreement, it would add even more volume to Nvidia’s already sizable pipeline. Following Kress’s comments, Nvidia’s stock climbed approximately 2.6%, reflecting investor optimism about the potential collaboration.
Growing Scrutiny Over Nvidia’s Investment Strategy
The company continues to navigate heightened scrutiny over its strategy of investing in AI startups that also rely heavily on its technology.
Critics have questioned whether these intertwined relationships could create circular financial structures at a time when broader concerns about an overheating AI investment landscape are intensifying.
Nvidia’s recent commitment of up to $10 billion to Anthropic—a direct competitor to OpenAI—has further fueled debate about the company’s approach.
According to Kress, that investment may also contribute to an increase in Nvidia’s long-term chip bookings, adding yet another layer to the company’s expanding reach across the AI ecosystem.
Despite the questions surrounding its investment tactics, Nvidia remains at the center of the AI hardware boom.
Demand for its advanced processors continues to surge as developers, cloud providers, and major AI labs race to secure the computing infrastructure required for increasingly complex models.
For now, the market is watching closely to see whether Nvidia and OpenAI can finalize terms on what would become one of the largest—and most consequential—hardware commitments in the rapidly evolving AI sector.
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