by whynotminot
2 subcomments
- As long as both companies remain stable and viable, there's probably limited upside to pouring more money into them. If they fail, and bring down the AI ecosystem with them, that is very bad news for Nvidia. So they've been there nurturing their success and providing capital to backstop their exponential growth.
You can see Nvidia stepping in throughout the ecosystem with confidence boosting investments where needed. They haven't just supported Anthropic and OpenAI.
If OpenAI and Anthropic succeed, and get their business fly-wheels fully spinning, they don't necessarily need more capital from Huang. Ultimately the goal of Nvidia is to profit from their long-term success by selling them GPUs for a long, long time. The goal isn't to keep plowing money into them forever.
- > Nvidia CEO Jensen Huang said his company’s recent investments in OpenAI and Anthropic are likely to be its last in both, saying that once they go public as anticipated later this year, the opportunity to invest closes
ok, sounds obvious
> Nvidia, for its part, isn’t offering much more on the matter
ok, so no more news from nvidia
> Still, a few other dynamics might also explain the pullback..
Wait it's a pullback?
This is terrible reporting, right?
- Instead of pouring more money into OpenAI and Anthropic, Nvidia should invest more in expanding production capacity for the RTX 5000 series and future generations. High-end consumer GPU availability is still constrained, especially for the RTX 5090, and street prices remain elevated. Nvidia should come back to the consumer side.
- Nvidia could flip a switch and start competing with former customers. They have the talent, the models, the HW, and they know how to quickly build out DCs.
- A better headline:
Nvidia rushed some investments in both companies just before they went public and are now are just waiting to get paid.
- The Stargate money didn’t show up I guess, and now the whole gridlock is collapsing?
- Blogspam derived from the original article by CNBC, with clickbait title.
> [subtitle] Nvidia CEO Jensen Huang said the company’s recent $30 billion investment in OpenAI “might be the last time” it invests in the AI startup as it gears up to go public.
Jensen meant he expects no more rounds before IPO.
[0] https://www.cnbc.com/2026/03/04/nvidia-huang-openai-investme...
by gilbetron
1 subcomments
- I think it is likely that they realize that LLM models will be able to be developed by many companies, and I see most early, heavy adopters of LLMs doing the math on giving OpenAI/Anthropic token fees versus just having in-house models, and realizing that, at this point, it sure seems like having your own models might be the future path.
Nvidia is in position, and has the resources, to see this with a much broader lens, and realizes OpenAI/Anthropic won't be able to corner the market and the long term play is to sell GPUs to cloud providers and companies themselves.
- My bet is Nvidia is using massive AI ability to dictate its investments.
And it logically predict that not much (more) investments are needed and it need time to become profitable.
That a signal that nobody should invest more in the IA big companies and now they MUST become profitable soon.
- That reads more as an image move. Better of they can position themselves as a provider of neutral tools and stay far away from the DoW discussion on use of said tools
by SpicyLemonZest
0 subcomment
- I don't really understand the idea that not investing more money is a "pullback". Have VC norms propagated so far that any company that makes any investment is presumed to be interested in repeated future rounds?
by captainbland
0 subcomment
- After seeing natural gas prices spike like that I'd probably pull out of such an energy intensive investment too
- Perfectly reasonable from Nvidia's side. But now thats one less way for sal altman to engineer the valuation upwards
- The important news is that OpenAI and Anthropic are pulling out from NVidia; they are not public companies.
- OpenAI and Anthropic are better off with cerebras rather than nvidia
- If this AI bubble pops we'll just have a ton of cheap powerful GPUs on the market and possibly even an uptick in job growth in tech.
by 7777777phil
0 subcomment
- Nvidia sells chips to whoever wins, so investing in a specific lab creates downside with no real upside. The more interesting read is whether Huang sees model providers compressing toward commodity pricing. I wrote about why that layer is structurally squeezed: https://philippdubach.com/posts/is-ai-really-eating-the-worl...
- Everyone knows the bubble is bursting.
by shablulman
0 subcomment
- [dead]
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