Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic, but his explanation raises more questions than it answers | TechCrunch

"Nvidia CEO Jensen Huang said his company's recent investments in OpenAI and Anthropic are likely to be its last in both companies, saying that once they go public, the opportunity to invest in a "consequential company like this" closes."

"When Nvidia first announced it would invest up to $100 billion in OpenAI last September, MIT Sloan professor Michael Cusumano described it to the Financial Times as "kind of a wash," observing that "Nvidia is investing $100 billion in OpenAI stock and OpenAI is saying they are going to buy $100 billion or more of Nvidia chips.""

"The investment it finalized just last week, as part of a $110 billion round, came in at $30 billion - well short of the $100 billion it had once pledged. On Wednesday, Huang acknowledged as much, saying investing the full amount is "probably not in the cards.""

Nvidia CEO Jensen Huang announced at the Morgan Stanley Technology, Media and Telecom conference that his company's investments in OpenAI and Anthropic are likely final before these companies go public. Nvidia reduced its OpenAI commitment from a pledged $100 billion to $30 billion in a recent funding round. The company's investment strategy focuses on expanding ecosystem reach rather than maximizing returns. Industry analysts have raised concerns about circular conflicts when major chip suppliers invest heavily in their largest customers, as exemplified by OpenAI's commitment to purchase substantial quantities of Nvidia chips. This dynamic may have influenced Nvidia's decision to scale back its investment commitments.

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