Is Nvidia’s $100B Deal With OpenAI Stalled? Altman, Huang And Oracle Try To Calm Market Jitters

• “We hope to be a gigantic customer (of Nvidia) for a very long time,” OpenAI CEO Sam Altman says.
• Nvidia CEO Jensen Huang says it is close to investing a huge amount in OpenAI.
• The uncertainty over OpenAI’s funding and cloud deal with Nvidia pressured shares of Oracle, for whom OpenAI is a key customer. 

OpenAI, Nvidia, and Oracle moved to calm markets on Monday after fresh concerns that a major Nvidia AI deal with OpenAI had stalled sparked significant same-day drops in Oracle and Nvidia shares.

“We love working with NVIDIA and they make the best AI chips in the world. We hope to be a gigantic customer for a very long time,” OpenAI CEO Sam Altman said in an X post. 

“I don't get where all this insanity is coming from,” he added, referring to the market reaction to a weekend report in the Wall Street Journal, which said Nvidia was rethinking its September agreement to invest up to $100 billion and build and run massive data centers for the ChatGPT maker.
 

Huang Brushes Aside Concerns 

Nvidia CEO Jensen Huang offered a response on the issue while speaking to reporters in Taipei, Taiwan, over Saturday and Sunday. Huang brushed off the report, saying that Nvidia’s investment in OpenAI would be its largest in a company. He said the September agreement was “never a commitment,” indicating that Nvidia might instead invest as part of an ongoing $100 billion equity fundraise at OpenAI.  

OpenAI Overhand On Oracle

Meanwhile, investors appear to be growing uneasy about Oracle’s outsized reliance on a single customer, OpenAI, and whether OpenAI can deliver on its $300 billion contract with Oracle.

As of Nov. 30, Oracle reported $523 billion of remaining performance obligations (simply, contracted sales not yet recognized as revenue), which included the $300 billion related to OpenAI. The figure was about nine times Oracle’s revenue for the previous four quarters. Meanwhile, the cloud company is increasing its debt – it announced plans to raise up to $50 billion in debt and equity this year, which has further heightened concerns about its financial health.

“The NVIDIA-OpenAI deal has zero impact on our financial relationship with OpenAI. We remain highly confident in OpenAI’s ability to raise funds and meet its commitments,” Oracle said in an X Post on Monday.

Retail, Analyst View

Nvidia shares dropped 2.9% while Oracle’s stock declined 2.8% on Monday. On Stocktwits, the retail sentiment remained ‘neutral’ for NVDA while the sentiment for ORCL dropped to ‘bullish’ from ‘extremely bullish.’ Retail investors across both streams broadly expect shares to bounce back this week.

Piper Sandler lowered its price target for Oracle stock to $240 from $290, owing to what it sees as weakness in Oracle’s underlying business and the software sector broadly. "Seat-compression and vibe coding narratives could set a ceiling on multiples,” the research firm said in an investor note, according to The Fly.

Nvidia Critical For OpenAI

Late Monday, OpenAI’s computing infrastructure leader, Sachin Katti, posted on X that Nvidia’s technology is “foundational” for OpenAI. 

“This is not a vendor relationship. It is deep, ongoing co-design,” he said, adding that OpenAI’s compute capacity would accelerate steadily from roughly 1.9 GW in 2025.

“The demand curve is unmistakable. The world needs orders of magnitude more compute. That’s why we are anchoring on NVIDIA as the core of our training and inference stack, while deliberately expanding the ecosystem around it through partnerships with Cerebras, AMD and Broadcom. This approach lets us move faster, deploy more broadly, and support the explosion of real-world use cases without sacrificing performance or reliability.”

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