Nvidia shares are down 2% after a report that its OpenAI investment stalled. Here's what's happening

Nvidia's shares experienced a downturn in premarket trading on Monday, dropping by 1.8% following reports that the company's proposed $100 billion investment in OpenAI may be facing delays. This news was highlighted in a recent Wall Street Journal article, which cited sources familiar with the situation. The partnership, initially announced in September, aimed to provide OpenAI with at least 10 gigawatts of computing power along with the substantial investment. However, Nvidia's CEO, Jensen Huang, had previously indicated to industry peers that the $100 billion figure was not a finalized commitment and was subject to change. Concerns regarding OpenAI's business strategy and competition from tech giants like Alphabet's Google and Anthropic were also noted as points of contention for Huang. In response to the swirling rumors, Huang labeled claims of dissatisfaction with OpenAI as "nonsense." He reaffirmed his commitment to investing significantly in the company but clarified that the amount would not reach $100 billion. "We are going to make a huge investment in OpenAI. I believe in OpenAI; their work is exceptional, and I enjoy collaborating with CEO Sam Altman," Huang stated. Huang also confirmed that Altman is in the process of finalizing the investment round, assuring that Nvidia will play a major role in it. "We will invest a great deal of money, probably the largest investment we've ever made," he emphasized. Commenting on the potential investment, Sarah Kunst, managing director at Cleo Capital, expressed concerns about the vagueness surrounding the final investment amount. She noted that Huang's statements lacked the assertiveness of a definitive $100 billion commitment, suggesting that the uncertainty could lead to further scrutiny between investors and startups in the media spotlight.