Nvidia is nearing finalization on a $30 billion investment in OpenAI, replacing a previous $100 billion, multi-year, massive partnership plan.
The deal is part of OpenAI’s latest funding round, which could value the company at around $830 billion, according to the Financial Times. OpenAI is expected to reinvest much of its capital into AI infrastructure, including Nvidia’s GPUs.
BREAKING: According to the FT, NVDA ($NVDA) is finalizing a $30 billion investment in OpenAI, replacing a previously announced $100 billion deal.
— Kobeissi Letter (@KobeissiLetter) February 20, 2026
Moving from a $100 billion commitment to a smaller $30 billion equity investment changes the financial risk profile.
Rather than directly funding large-scale infrastructure, Nvidia takes ownership while securing demand for the hardware. The restructuring has already attracted attention from investors who have been keeping an eye on Nvidia’s volatile stock price.
Nvidia stock price over the past week. Source: Google Finance
From 6-week lows to strategic recovery: Nvidia’s volatile month
Nvidia stock has soared in recent weeks. In early February, the stock fell to around $177, a six-week low.
The decline followed uncertainty surrounding the original $100 billion OpenAI contract, concerns about US restrictions on AI chip exports to China, and broader investor concerns about the sustainability of AI spending.
However, the stock rebounded as Nvidia announced small investment commitments, new partnerships and a large chip supply deal.
Top 10 US AI stocks. Source: INDmoney
A multi-year agreement to supply Meta with millions of AI chips also helped restore trust. By mid-February, NVIDIA stock had recovered toward the low $180s.
Still, volatility continued. Investors remained cautious about regulatory risks, high valuation levels and whether spending on AI infrastructure would deliver sustainable returns.
Nvidia commits to a much smaller deal with OpenAI, but has a bigger signal
The latest $30 billion investment is widely seen as strategically bullish for Nvidia. First, it eases the financial burden of an initial $100 billion plan that could have weighed on Nvidia’s balance sheet.
Second, it strengthens Nvidia’s position as OpenAI’s leading hardware partner.
This means Nvidia benefits in two ways. The company will continue to sell the chips that power OpenAI’s model while gaining equity exposure to one of the world’s most valuable AI companies.
However, short-term responses are likely to remain complex. Big investments always come with risk, and some investors want Nvidia to focus purely on selling chips.
Still, the agreement confirms an important point: spending on AI infrastructure continues to accelerate.
Ultimately, this investment strengthens Nvidia’s long-term prospects. This confirms that Nvidia remains at the center of the global AI boom even as the market navigates near-term uncertainty.
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