Nvidia Reaffirms $100B OpenAI Plan as Q3 Asset Management Raises Stake 1 505%
Nvidia CEO Jensen Huang clarified that the proposed $100 billion investment in OpenAI is nonbinding and will be executed “one step at a time,” dismissing reports that the deal had stalled. Q3 Asset Management raised its NVDA position by 1 504.9% to 20 510 shares, signaling increased institutional confidence.
1. Huang Reiterates GPU Leadership Over Custom AI Chips
Nvidia CEO Jensen Huang this week dismissed growing industry speculation that hyperscale cloud providers could supplant Nvidia’s GPUs with in-house AI accelerators. He pointed to Nvidia’s $12 billion annual R&D budget, the escalating engineering complexity of next-generation GPU architectures and the company’s full-stack software and hardware ecosystem—spanning everything from inference libraries to supercomputer interconnects—as creating an insurmountable moat. Huang noted that Nvidia’s GPUs now power over 80% of the world’s AI training clusters, and that the integration of custom tensor cores and advanced memory subsystems in the latest architectures makes it “practically impossible” for a new entrant to match performance per watt at scale.
2. OpenAI Investment Clarified as Nonbinding but Ongoing
Responding to a recent Wall Street Journal report suggesting Nvidia’s planned multibillion-dollar commitment to OpenAI was stalled, Huang characterized the idea that Nvidia was unhappy with OpenAI as “nonsense.” He confirmed that the letter of intent signed last September—which outlined potential data center build-out funding—was nonbinding by design, and emphasized Nvidia’s intent to invest “one step at a time” in line with infrastructure milestones. While some internal voices had sought more stringent discipline around capital deployment, Huang affirmed Nvidia remains “very happy and honored” to back OpenAI’s expansion, pointing out that half of OpenAI’s current supercomputing clusters already run exclusively on Nvidia accelerators.
3. Strong Institutional Backing and Analyst Confidence
Recent regulatory filings show that Q3 Asset Management boosted its Nvidia stake by over 1,500%, becoming one of the company’s top ten institutional holders with a position representing more than 1% of its portfolio. Insiders, including the company’s EVP of operations, have sold portions of their holdings—totaling just over 1.6 million shares in the last quarter—while retaining over 95% ownership collectively. On the sell-side, four major banks have upgraded Nvidia to “strong buy” in the past two months, and the consensus among more than 50 analysts remains overwhelmingly positive, citing projected AI data center capex growth of 25% annually through 2028 and an expanding GPU order backlog that already extends into late 2027.