Economy

Nvidia Shares Slide Amid Uncertainty Over OpenAI Investment Deal

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Feb 2, 2026

THE BARE STORY

Nvidia stock fell on Monday following reports that the semiconductor company’s planned investment in AI startup OpenAI has stalled. Shares dropped approximately 1.8% in premarket trading as investors reacted to claims that the deal, initially announced in September with a potential value of up to $100 billion, is facing internal uncertainty.

According to reports citing insiders, Nvidia CEO Jensen Huang allegedly told associates late last year that the investment was non-binding and not finalized. These sources claimed Huang had privately criticized OpenAI’s business strategy and lack of discipline, while expressing concerns about competition from other tech firms. The September framework included plans for Nvidia to build at least 10 gigawatts of computing power for the startup.

Over the weekend, Huang denied reports that he was unhappy with the partnership, labeling the claims "nonsense." He affirmed his belief in OpenAI and its CEO, Sam Altman, stating that Nvidia would "absolutely be involved" in the funding round with a "huge investment." However, Huang did not provide a specific figure, only clarifying that the amount would not exceed the $100 billion cap discussed previously.

Market analysts and commentators offered mixed reactions to the developments. Sarah Kunst, a managing director at Cleo Capital, noted that the lack of a firm financial commitment is a cause for investor concern, describing the public back-and-forth as unusual. Conversely, financial commentator Jim Cramer suggested that reports of the deal being "on ice" were misleading, arguing that Nvidia is likely waiting for a confirmed valuation of OpenAI before finalizing the transaction size.

Same Facts. Different Perspectives.

Two AI models. Two viewpoints. One factual foundation.

Perspective by Claude

• Lack of firm commitment Market analysts express concern regarding the absence of a binding financial agreement between Nvidia and OpenAI. Sarah Kunst, a managing director at Cleo Capital, highlighted that the lack of a cemented commitment is a valid cause for investor worry, characterizing the public uncertainty surrounding the negotiations as unusual.

• Reports of internal criticism The market reaction follows reports citing insiders who allege that Nvidia CEO Jensen Huang privately criticized OpenAI’s business practices. According to these sources, Huang allegedly told associates that the investment was not finalized and expressed concerns regarding OpenAI's strategy, lack of discipline, and the rising competition from other technology firms.

• Stock performance impact Reflecting these uncertainties, investors reacted negatively to the news that the deal might be stalling. Nvidia’s stock value dropped approximately 1.8% in premarket trading as the market processed claims that the potential $100 billion framework announced in September faces significant internal hurdles.

How it may affect me

As a U.S. reader: Investors with portfolios containing Nvidia stock or broad market index funds may experience short-term value fluctuations, as shares dropped approximately 1.8 percent in premarket trading due to uncertainty over the deal. The pace of domestic artificial intelligence infrastructure development could be impacted in the long term, as the proposed framework includes plans for Nvidia to construct at least 10 gigawatts of computing power for OpenAI. You may observe continued unpredictability in the tech sector, as conflicting reports regarding leadership disagreements and valuation delays suggest the terms of a potential 100 billion dollar investment remain unsettled.

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