• NVIDIA (NVDA) shares declined following a Wall Street Journal report highlighting internal doubts about the scale of its planned investment in OpenAI.
  • CEO Jensen Huang pushed back, affirming a significant but smaller commitment, with discussions shifting to tens of billions in equity.
  • The uncertainty sparked market jitters, impacting AI and tech stocks amid broader concerns over mega-capex returns.

NVIDIA shares fell in late trading on Friday, January 31, 2026, after a Wall Street Journal report flagged internal skepticism within the semiconductor giant over its planned up-to-$100 billion investment in OpenAI. The report, citing people familiar with the matter, suggested the deal might be scaled back due to its massive size—representing 53% of NVIDIA's trailing revenue and 89% of its EBITDA—as well as concerns over OpenAI's strategy and rising competition from rivals like Anthropic and Google (GOOGL).

CEO Jensen Huang, speaking from Taipei where he was visiting amid ongoing U.S.-China chip tensions, quickly rebutted the doubts, calling them "nonsense" in a statement to reporters. He confirmed NVIDIA will "invest a great deal" in OpenAI's upcoming $100 billion funding round, which could value the AI leader at around $830 billion, but explicitly noted the commitment would not exceed $100 billion. "It's a good investment," Huang said, though he acknowledged discussions have evolved to focus on tens of billions in equity rather than the full amount initially floated.

Efforts to restructure the investment have hit a snag, according to sources, with internal pushback from NVIDIA's board and financial teams wary of overexposure. The non-binding letter of intent, announced in September 2025, had tied the investment to deploying 10 gigawatts of AI infrastructure, starting with 1 gigawatt on NVIDIA's Vera Rubin platform in late 2026. Without a definitive agreement, the scaled-back approach could delay OpenAI's aggressive scaling plans for "superintelligence," though Huang emphasized NVIDIA remains a preferred partner in co-optimizing hardware and software.

Market reaction was swift, with NVIDIA's stock dropping and sentiment turning bearish on platforms like Reddit's r/wallstreetbets, where posts garnered over 2,000 upvotes. Broader AI and tech stocks also felt the ripple, echoing recent skepticism seen when Oracle (ORCL)'s shares fell 4% after announcing a $45-50 billion AI capex plan. Analysts hold a median price target of $254 for NVIDIA, but the volatility underscores growing investor anxiety over whether such massive infrastructure investments—what Huang calls "the largest infrastructure build-out in history"—can deliver sustainable returns.

OpenAI, which boasts 700 million weekly users, is in the midst of a funding round that also involves Amazon (AMZN), Microsoft (MSFT), and SoftBank (SFTBY), with partnerships extending to Microsoft, Oracle, and Stargate for AI factories. NVIDIA, with a market cap of $4.65 trillion and trailing revenue of $187 billion, has seen its shares surge 53% over the past year on AI demand, but trades at a lofty 48x trailing earnings. The company did not respond to additional requests for comment on the deal's specifics, though Huang's remarks aimed to reassure stakeholders that the partnership remains intact, albeit with adjusted financial terms.

Short-term, NVIDIA is expected to detail its investment in OpenAI's funding round soon, with the first infrastructure deployment slated for the second half of 2026. Long-term, the collaboration supports OpenAI's push toward artificial general intelligence, but risks persist if OpenAI stumbles or competition intensifies. As one source put it, "It's a balancing act—big bets on AI are essential, but not at the cost of financial prudence."