Nvidia shares saw a nearly 2% drop in early trading on Monday, February 2, 2026, following news that its massive $100 billion investment in OpenAI may not be as finalized as previously thought. The semiconductor giant, which has become the backbone of the artificial intelligence boom, faced investor caution as reports suggested internal hesitation regarding the scale and structure of the deal.
What Triggered the Sell-Off?
The stock decline began in premarket activity after a report from The Wall Street Journal indicated that Nvidia’s ambitious plan to invest twelve figures into OpenAI had stalled. For context, the two companies had signed a letter of intent in September 2025. The original plan involved building at least 10 gigawatts of computing infrastructure—roughly enough to power a city the size of New York—exclusively using Nvidia’s high-end AI chips.
However, recent shifts in tone have left investors questioning the timeline. Reports surfaced that Nvidia CEO Jensen Huang told industry associates that the $100 billion figure was “non-binding” and not a firm commitment. These reports also suggested that some insiders at Nvidia were skeptical of OpenAI’s business discipline and concerned about rising competition from rivals like Google and Anthropic.
Jensen Huang Sets the Record Straight
Speaking to reporters in Taipei over the weekend, Huang was quick to address the rumors. He dismissed claims of friction between the two companies as “complete nonsense” and reiterated his admiration for OpenAI and its CEO, Sam Altman.
“We are going to make a huge investment in OpenAI,” Huang stated. “I believe in OpenAI; the work they do is incredible. They are one of the most consequential companies of our time, and I really love working with Sam.”
While Huang confirmed that Nvidia would definitely participate in OpenAI’s current funding round, he clarified two major points:
- No $100 Billion Check: He explicitly noted that the investment in this specific round would not reach the $100 billion mark.
- Largest Investment Ever: Despite the lower immediate figure, he suggested this would likely still be the largest single investment Nvidia has ever made in another company.
Why Investors are Nervous
Despite Huang’s reassuring words, the lack of a specific, binding dollar amount has created a vacuum of uncertainty. Market analysts noted that the public “back and forth” between a major investor and a high-profile startup is unusual and can be a red flag for the market.
Sarah Kunst, managing director at Cleo Capital, pointed out that the shifting language—moving from a definitive $100 billion plan to a more vague “huge investment”—has caused some to pause. There are also broader concerns about “circular demand” (also known as circular financing). This occurs when tech giants like Nvidia or Microsoft invest capital into AI startups (like OpenAI or CoreWeave), which then use those exact funds to purchase the investor’s own chips or cloud services. This loop can potentially inflate the appearance of organic market demand.
The Road Ahead for Nvidia and OpenAI
OpenAI is currently closing a massive funding round, and while Nvidia’s total contribution remains a mystery, the partnership is far from over. OpenAI remains one of Nvidia’s most important customers, and Nvidia remains the primary supplier for the heavy-duty processing power required to train the next generation of ChatGPT.
Nvidia’s stock performance on Monday reflects a “wait and see” attitude from Wall Street. Investors are looking for more than just verbal praise; they want clear details on how much capital Nvidia is willing to commit and what that means for the future of AI infrastructure.
