Nvidia’s $100B AI Promise — Still Just a Promise, CEO Confirms
In an era where tech headlines blur reality with speculation, Nvidia’s much-ballyhooed $100 billion investment plan with OpenAI has been clarified in stark terms: no cash has actually changed hands yet — not a single penny. (Yahoo Finance)
That’s the message from Nvidia CEO Jensen Huang, who told Fox Business this week that despite unveiling a blockbuster partnership just months ago, the company hasn’t funded OpenAI to date. (Yahoo Finance)
What’s Behind the Hype?
In September 2025, Nvidia and OpenAI announced a landmark strategic partnership aimed at deploying at least 10 gigawatts of Nvidia hardware — essentially millions of GPUs — to power the next generation of AI systems. The framework included Nvidia’s intention to invest up to $100 billion in OpenAI over time, tied to the progressive deployment of that compute infrastructure. (OpenAI)
But as Nvidia’s CFO recently emphasized in earnings-related comments, the agreement still isn’t final and hasn’t been signed. (Mobile World Live) That means the ambitious investment plan remains a letter of intent and long-term vision, not a completed deal with cash transfers yet underway.
Why the Disconnect?
There are a few reasons behind the confusion:
- Letter of Intent ≠ Completed Contract: The September announcement outlined broad goals and intentions, but both sides are still negotiating definitive terms. (Mobile World Live)
- Gradual Deployment: Nvidia’s planned $100B is intended to be invested progressively as compute capacity is built — not disbursed all at once. (OpenAI)
- Market and Deal Complexity: Finalizing a multibillion-dollar, infrastructure-centric deal — especially involving advanced chips, data centers, and multi-year deployment — naturally takes time.
The bottom line: the strategic partnership remains a headline-making initiative, but the financial reality hasn’t yet caught up to the buzz.
Why It Still Matters
Even without immediate funding flowing, the partnership has major implications:
- It cements Nvidia’s central role in supplying critical AI compute infrastructure. (Investing.com)
- OpenAI’s need for massive amounts of compute — and Nvidia’s GPU dominance — keeps both companies at the heart of the AI arms race. (The Star)
- Investors and markets may recalibrate their expectations now that the distinction between intent and execution is clearer.
Glossary
- GPU (Graphics Processing Unit): A type of processor highly efficient at the parallel computations needed to train and run large AI models.
- Gigawatt (GW): In this context, a measure of data-center compute capacity — roughly equating to millions of GPUs operating at scale.
- Letter of Intent (LOI): A non-binding agreement outlining planned terms before a formal contract is signed.
- Progressive Investment: Funding delivered over time and tied to specific deployment milestones.
🔗 Source: https://www.techinasia.com/news/nvidia-has-not-funded-openai-despite-100b-plan-ceo-says
