Jensen Huang responded to AMD's "stock donation" to OpenAI: It's a very smart deal. OpenAI doesn't have the money to pay me yet.
Jensen Huang has come forward to respond to the major moves of his competitors.
In the face of AMD's move to offer 10% of the company's equity in exchange for an order from OpenAI, Huang repeatedly used the word "surprised/surprising" twice and also said that this move was "quite clever" (it’s clever).
Considering how excited they are about their next-generation products, this is really imaginative, unique, and surprising.
I'm very surprised that they gave up 10% of the company's equity before the product was even built. So, I think, this is very clever.
Jensen Huang specifically emphasized that the nature of NVIDIA's deal with OpenAI is "very different": NVIDIA sells products directly to OpenAI, rather than exchanging equity like AMD.
But when asked how OpenAI would pay for this huge order, Jensen Huang admitted: "They don't have the money right now."
He explained that OpenAI needs to raise funds through exponentially growing future revenues, equity, or debt financing.
NVIDIA has the opportunity to participate in follow - on investments during OpenAI's future financing rounds. Jensen Huang also revealed that "My only regret is that we didn't have enough money when OpenAI was founded and didn't invest more."
The so - called "circular deal" game, in which NVIDIA is also deeply involved, is triggering an unprecedented capital boom in the AI industry.
The Trillion - Dollar "Circular Deal" Game
Just two weeks ago, NVIDIA announced that it would invest up to $100 billion in OpenAI.
In return, OpenAI agreed to build and deploy NVIDIA systems that require 10 gigawatts of power, equivalent to 4 to 5 million GPUs.
Then, OpenAI immediately reached a deal with AMD, NVIDIA's top competitor. It not only plans to purchase a large number of AMD's AI chips but also will obtain warrants for up to 160 million shares of AMD, equivalent to about 10% of AMD's equity.
According to the agreement details, OpenAI promised to purchase AMD chips that require 10 gigawatts of power in the next few years, including the upcoming MI450 series.
In return, AMD granted warrants to OpenAI. If OpenAI exercises all the warrants, it will obtain about 10% of AMD's shares.
The exercise price of these warrants is only a symbolic $0.01 per share. However, the exercise conditions are linked to the chip deployment volume and AMD's stock price performance. One of the milestones requires AMD's stock price to reach $600.
In addition, OpenAI also signed a cloud - computing cooperation agreement worth $300 billion with Oracle. To meet OpenAI's computing power needs, Oracle needs to purchase billions of dollars' worth of GPU chips from NVIDIA.
In this way, NVIDIA's investment funds flow through OpenAI to Oracle and then flow back to NVIDIA in the form of hardware purchases, forming a perfect capital closed - loop.
Statistics show that the total value of OpenAI's AI computing deals with NVIDIA, AMD, and Oracle has easily exceeded $1 trillion. OpenAI itself is not expected to achieve positive cash flow until 2029 and is currently burning money at a crazy rate.
Jensen Huang's AI Investment Portfolio Continues to Expand
While commenting on AMD's deal, Jensen Huang also confirmed the news that NVIDIA is participating in the latest round of financing of Musk's xAI. NVIDIA plans to invest $2 billion in xAI, and the total amount of this round of financing is about $20 billion.
Jensen Huang said that he hopes to give Musk more money: "I want to participate in almost all projects that Musk is involved in."
This investment also uses a special purpose vehicle (SPV) structure. The funds will be used to purchase NVIDIA processors, and then xAI will lease these chips for five years.
NVIDIA has also invested in CoreWeave, an AI data center operator, and holds 7% of its shares. Jensen Huang said that CoreWeave is one of NVIDIA's "remarkable investments" recently.
OpenAI also invested $350 million in CoreWeave before its IPO and recently expanded its cloud - service agreement with the company to $22.4 billion.
According to PitchBook data, NVIDIA participated in 52 venture - capital investment deals in AI companies in 2024, and by the end of September 2025, it had completed 50 deals. NVIDIA's chief financial officer said that the company intends to invest its cash in "the most strategically important parts of the ecosystem."
However, these complex network transactions have raised market concerns about an AI bubble. An analyst from Morningstar warned: "If we find that there is an AI bubble and it bursts a year later, these transactions may be one of the early warning signs."
In the face of doubts, a NVIDIA spokesperson said that the company "does not require any of the companies we invest in to use NVIDIA technology."
Jensen Huang also reiterated in an interview: "We won't require them to use this investment to buy NVIDIA's technology. They can use it for whatever they want."
Reference Links:
[1]https://www.bloomberg.com/news/features/2025-10-07/openai-s-nvidia-amd-deals-boost-1-trillion-ai-boom-with-circular-deals
[2]https://www.cnbc.com/2025/10/08/nvidia-huang-amd-open-ai.html
[3]https://www.bloomberg.com/news/articles/2025-10-07/musk-s-xai-nears-20-billion-capital-raise-tied-to-nvidia-chips?embedded-checkout=true
This article is from the WeChat public account "QbitAI". Author: Meng Chen. Republished by 36Kr with permission.