TLDR
- NVIDIA shares declined after reports of internal resistance to a $100B OpenAI investment plan.
- The proposed OpenAI deal equals over half of Nvidia’s annual revenue, raising scale concerns.
- Online sentiment shifted sharply as retail discussions reflected growing unease over execution risk.
- The development follows heightened scrutiny of large AI infrastructure spending across the tech sector.
- NVIDIA’s AI expansion story now faces added uncertainty amid questions over capital deployment.
NVIDIA Corporation (NVDA) traded at $188.36 as of 11:02:10 AM EST, down 1.45% from the previous close. The price movement followed reports of internal opposition to a proposed $100 billion investment in OpenAI. The stock showed significant intraday volatility, briefly recovering before sliding again by late morning.
Internal Resistance Challenges Nvidia’s OpenAI Strategy
NVIDIA is facing internal resistance over a proposed capital deployment plan involving OpenAI, according to a Wall Street Journal report. The $100 billion proposal equates to nearly 53% of Nvidia’s trailing twelve-month revenue. Additionally, it accounts for 89% of the company’s reported EBITDA, signaling the scale of the proposed deal.
Despite the company’s $4.65 trillion market capitalization, employees have questioned the return potential of the partnership. Sources familiar with the situation described rising friction around the financial commitment required.
While no official confirmation has been released, internal hesitation has added uncertainty to Nvidia’s AI infrastructure expansion plans. The company has not issued a public statement addressing the reported pushback. The timing coincides with growing market sensitivity to large-scale spending plans in the AI ecosystem.
Sentiment Shifts Across Online Communities
Sentiment scores fell dramatically across tracked posts, dropping from a range of 72–78 on January 29 to 32–47 by February 1. The discussion centered on execution risks and the scale of the investment, highlighting doubts about the project’s feasibility. Several users cited similar concerns seen with other tech giants that committed to costly AI ventures.
These reactions indicate a potential cooling in enthusiasm around unconfirmed mega-scale spending plans. Retail traders have previously responded strongly to news related to major AI partnerships. The recent shift underscores a growing demand for clear return projections and measured growth.
Strategic Pressure Mirrors Industry Trends
This internal pushback comes shortly after Nvidia CEO Jensen Huang made confident public remarks about AI demand growth and chip capacity. He emphasized the company’s leading position in the AI stack and projected further infrastructure expansion. The new developments introduce a potential divergence between leadership messaging and internal sentiment.
Oracle recently faced similar skepticism after announcing a $45–50 billion AI infrastructure plan. The news triggered a 4% drop in Oracle’s premarket trading as attention turned to debt exposure. NVIDIA now finds itself navigating comparable scrutiny as stakeholders weigh the financial and strategic implications of its own proposal.
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