Nvidia CEO Jensen Huang Signals Final Major Stakes in OpenAI and Anthropic Ahead of IPO Plans

Nvidia Investments in OpenAI and Anthropic Near Completion​

Nvidia Chief Executive Officer Jensen Huang has indicated that the company’s recent investments in OpenAI and Anthropic may mark its final major equity positions in the two artificial intelligence firms, as both companies prepare for potential public listings this year.

Speaking at the Morgan Stanley Technology, Media and Telecom conference on Wednesday, Huang said the opportunity to invest as much as $100 billion in OpenAI is no longer feasible, given that the creator of ChatGPT is expected to move toward an initial public offering later this year.

$100 Billion Deal Abandoned as IPO Nears​

Nvidia and OpenAI had previously announced a $100 billion deal in September last year. However, Nvidia has since finalized a $30 billion investment in OpenAI, a move Huang suggested could represent the company’s last chance to take a meaningful stake in what he described as a consequential enterprise.

OpenAI is reportedly laying the groundwork for an IPO that could value the company at up to $1 trillion, according to earlier reports. The expected public offering has reshaped Nvidia’s investment calculus, limiting further large-scale private funding opportunities.

In February, the Financial Times reported that Nvidia and OpenAI had stepped away from the previously discussed $100 billion arrangement amid concerns about the broader health of the artificial intelligence sector.

Anthropic Investment Also Reaches Ceiling​

Huang also noted that Nvidia’s $10 billion investment in Anthropic is likely to be its final significant capital infusion into the startup. Anthropic is reportedly exploring a public listing this year as well.

The scale of Nvidia’s backing in both AI companies had drawn scrutiny from some market observers. Concerns were raised about potential circular capital flows, particularly in the case of Anthropic. A substantial investment would have positioned Nvidia as a major shareholder in one of its largest customers, with expectations that much of the funding could be directed toward purchasing Nvidia’s own AI processors.

AI Sector Faces Heightened Scrutiny​

As OpenAI and Anthropic move closer to public markets, Nvidia appears to be shifting its strategy from large private equity stakes to a more conventional commercial relationship model. The developments also come at a time when parts of the AI sector face increased examination regarding valuations, capital deployment, and long-term sustainability.

OpenAI and Anthropic did not immediately respond to requests for comment regarding the reported investment changes and IPO plans.

With potential IPOs on the horizon, Nvidia’s latest statements suggest a turning point in its investment approach to leading AI startups, even as its technology continues to power much of the sector’s infrastructure.