CEO Huang Says Nvidia (NVDA) Is Pulling Back from OpenAI and Anthropic. But Something Doesn’t Add Up

Nvidia NVDA -1.10% ▼ CEO Jensen Huang stated on March 4, 2026, at the Morgan Stanley (MS) technology, media, and telecom conference that the company’s recent investments in OpenAI and Anthropic are likely its last in both AI firms.

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Huang cited the anticipated initial public offerings (IPOs) of OpenAI and Anthropic later in 2026 as closing the window for further private investments. This follows Nvidia’s finalized $30 billion investment in OpenAI last week and its $10 billion stake in Anthropic from November of the prior year.

Huang Details Investment Limits and Strategic Focus

Nvidia had previously announced a potential commitment of up to $100 billion to OpenAI in September of the previous year, as part of a partnership focused on AI infrastructure development. The finalized amount in OpenAI’s $110 billion funding round was $30 billion. Huang noted that investing the full $100 billion is “probably not in the cards.”

For Anthropic, the $10 billion investment announced in November is also believed to be Nvidia’s final commitment. An Nvidia spokesman cited comments from the company’s fourth-quarter earnings call, where Huang emphasized that investments aim to expand and deepen the ecosystem’s reach.

But the Reason for Pulling Investments Raises Questions

Huang’s reasoning for stepping back, however, may not fully add up. His claim on Wednesday that upcoming IPOs would close the door on further investments is difficult to square with how late-stage private markets typically work. Private companies often continue raising capital from strategic investors right up until public listings.

Two deeper issues also stand out from his explanations. First, the circular nature of these deals, where Nvidia investors in OpenAI while the AI company buys Nvidia chips, drew scrutiny from an MIT Sloan professor who called it “kind of a wash” and raised concerns about an emerging investment bubble. That likely explains why Nvidia’s $100 billion pledge to OpenAI shrank to $30 billion.

Secondly, Nvidia’s relationship with Anthropic soured a bit after CEO Dario Amodei compared U.S. chip companies selling processors to approved Chinese customers to “selling nuclear weapons to North Korea.” This statement comes after President Trump blacklisted Anthropic from federal use entirely.

Is it too Late to Invest in Nvidia Now?

Investors interested in AI stocks can still pivot to top players like Nvidia. Although they may not be able to recreate the massive gains from past all-time highs, TipRanks’ consensus rating still recommends NVDA as a “Strong Buy,” with upside potential of over 51.4%.

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