What happens when the AI companies building the future stop raising massive private capital? That possibility may be closer than expected, as chip giant Nvidia signals its large-scale investments in leading AI startups such as OpenAI and Anthropic could be nearing their end while both companies move closer to potential public listings.
Speaking at the Morgan Stanley Technology, Media and Telecom conference on Wednesday, Nvidia CEO Jensen Huang indicated that the chipmaker’s recent funding rounds in the two AI firms may be its last major bets in them.
Huang noted that the opportunity to invest as much as $100 billion in OpenAI, is likely no longer feasible as the startup prepares for a potential initial public offering later this year. Instead, Nvidia has finalised a smaller investment worth about $30 billion in the company.
OpenAI has reportedly been laying the groundwork for an IPO that could value it at as much as $1 trillion, according to earlier reports. If the listing goes ahead, it would mark one of the most closely watched public debuts in the technology sector since companies such as Meta and Snowflake tapped public markets during previous tech investment booms.
Nvidia’s investment activity in another AI startup may also be nearing its limit. Huang said the company’s roughly $10 billion stake in Anthropic could similarly be the last opportunity for Nvidia to back the firm privately. Anthropic has been exploring the possibility of going public this year, although the company has not confirmed a final decision.
The evolving relationship between AI companies and their biggest hardware suppliers has also drawn scrutiny from analysts. Nvidia’s chips power much of the global AI infrastructure, making companies such as OpenAI and Anthropic some of its largest customers. Large investments in these firms could create a circular dynamic, where the capital invested ultimately returns to Nvidia through purchases of its AI processors.
Earlier this year, the Financial Times reported that Nvidia and OpenAI had stepped away from a previously discussed $100 billion investment arrangement amid growing questions about the pace and sustainability of the AI investment cycle.
The situation echoes past moments in the tech industry when rapidly growing startups turned to public markets after years of private funding. Companies such as Google and Facebook followed similar paths during earlier waves of technological transformation, transitioning from heavily funded startups to publicly traded giants.
For Nvidia, which has become one of the biggest beneficiaries of the AI boom, the shift could mark a turning point. As some of the most influential AI startups consider going public, opportunities for strategic private investments in the sector may become increasingly limited.
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