Nvdidia: no more invests in OpenAI or Anthropic, says CEO Jensen Huang

At a technology conference, Nvidia CEO Jensen Huang announced that his company is unlikely to make any further investments in OpenAI and Anthropic. Nvidia had invested large sums in both companies in the past.

The Background

Last September, Nvidia initially announced plans to invest up to $100 billion in OpenAI. The circular structure of the deal was critically questioned by many observers: Nvidia invests in OpenAI, and OpenAI plans to use funds to buy Nvidia chips.

Ultimately, Nvidia invested $30 billion as part of an OpenAI funding round. For Anthropic, Nvidia's investment amounted to $10 billion.

Official Reasons for the Withdrawal

Jensen Huang cited the upcoming initial public offerings (IPOs) of both companies as the main reason for halting further investments. He assumes that OpenAI and Anthropic will go public within the same year. This closes the window for private investments. A company spokesperson also referred to earlier statements by Huang, according to which the strategic goals of the investments, specifically the expansion and deepening of their own ecosystem, had already been achieved.

Since Nvidia already generates revenue through the sale of hardware to both companies, there is no need from a corporate perspective for further capital to increase returns.

Complex Market Dynamics and Political Influences

In addition to the IPOs, observers point to other developments that might have changed the situation. There were concerns regarding a potential investment bubble.
At the same time, Huang dismissed rumors of a rift between Nvidia and OpenAI. Anthropic CEO Dario Amodei expressed criticism in Davos about the sale of US chips to Chinese customers by semiconductor companies and compared it to the sale of nuclear weapons.

Additionally, there were political complications. The Trump administration placed Anthropic on a blacklist and prohibited federal agencies and military contractors from using the technology because the company refused to allow its models to be used for autonomous weapons or mass surveillance. Almost simultaneously, OpenAI signed a contract with the US Department of Defense, which in turn was publicly criticized by Anthropic.

Nvidia is thus in the position of being involved in two companies that pursue different paths in their cooperation with authorities. Analysts suggest that the halt in investments could also be a withdrawal from this complex situation.