Nvidia has withdrawn its previously discussed $100 billion investment in OpenAI, primarily due to significant supply chain commitments totaling $95.2 billion that restrict its liquidity. Despite reporting a strong earnings performance with a 73% revenue boost to $68 billion in the fourth quarter, Nvidia's financial flexibility is hampered by these commitments. This shift comes as competitors like Meta seek to diversify their computing resources, further complicating Nvidia's strategic positioning in the AI sector.
“This is starting to sound a whole lot like the walkback that Nvidia just pulled on OpenAI. Remember when Nvidia had that joint press release... Jensen kind of rugpulled that and oh no, no, we never had that idea.”
“The total supply related commitments that Nvidia has are $95.2 billion. In other words, in order for them to actually manufacture the product that they need for the next quote several quarters... They need to spend $95.2 billion.”
“The total supply related commitments that Nvidia has are $95.2 billion. In other words, in order for them to actually manufacture the product that they need for the next quote several quarters, which is probably three quarters, right? Just to get through the the rest of this calendar year probably or their fiscal year roughly the same. They need to spend $95.2 billion.”
“Nvidia earnings obviously were fine, but they did raise some questions like why is essentially $95 billion of Nvidia's capital tied up in supply chain commitments?”
“Nvidia absolutely just dominated earnings as always. Eight out of eight of our last earnings reports. Nvidia's absolutely crushed it. And so here they are again beating on earnings.”
“For companies such as Apple, Nvidia, and AMD, long-term planning increasingly includes contingency strategies for supply chain stability.”
“You can see that SoftBank today um dissolved their entire stake in Nvidia according to an SEC filing.”
“NVIDIA Corp. · Last · Last · 196.12”
“Companies like Alphabet and Amazon · may be spending · so much on Nvidia’s chips”
“Nvidia · headlines · earnings reports · this busy week”
“Nvidia · has a median target price of · $261 per share · 43% upside from the current share price of $182”
“Nvidia · reported · exceptional financial results in the fourth quarter · Revenue climbed 73% to $68 billion”
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