Two months ago Nvidia CEO Jensen Huang and OpenAI CEO Sam Altman stood side by side in San Jose, California, to announce a historic agreement between the two leaders in artificial intelligence.
Nvidia would invest $100 billion over a number of years, starting in 2026, as OpenAI’s AI supercomputing facilities come online, the duo said. The timing of the buildouts and the cost of each data center weren’t disclosed.
But in Nvidia’s quarterly financial report on Wednesday, the chipmaker reminded investors that there’s a big difference between an announcement and a contract.
“There is no assurance that we will enter into definitive agreements with respect to the OpenAI opportunity or other potential investments, or that any investment will be completed on expected terms,” Nvidia said in the risk factors section of its quarterly filing.
Nvidia has been on an investing binge of late, putting its ever-expanding cash hoard to use, and financially supporting companies that buy its graphics processing units, or GPUs. In addition to the OpenAI arrangement, Nvidia on Wednesday highlighted its $5 billion commitment to invest in Intel during the quarter and its agreement this week to invest up to $10 billion in Anthropic.
An OpenAI spokesperson didn’t provide a comment but pointed to Huang’s statements on the call, including his description of OpenAI as a “once-in-a-generation company” and his expectation that the investment will “translate to extraordinary returns.”
“There is no assurance that any investment will be completed on expected terms, if at all,” Nvidia said.
The key difference with OpenAI is the scale of the planned investment and the benchmarks that would need to be met for all the money to come through. A source told CNBC at the time of the announcement that an initial $10 billion would be available to OpenAI soon to help the company work towards deploying its first gigawatt of capacity.
Altman said recently that OpenAI will end the year on a $20 billion annualized revenue run rate, which is a massive number considering its flagship ChatGPT product is only three years old. Altman said the company expects to reach hundreds of billions of dollars in revenue by 2030. But that figure doesn’t come anywhere close to covering the company’s expenses.
In total, OpenAI has announced roughly $1.4 trillion in infrastructure spending with a number of partners as it seeks to continue building out its AI models and services. To get there, the company is reliant on outside capital.
Despite the uncertainty of the September agreement, Nvidia executives continue to sound bullish on the company’s work with OpenAI. On Nvidia’s earnings call, after the chipmaker reported a solid revenue and earnings beat along with stronger-than-expected guidance, CFO Colette Kress touted OpenAI’s growth.
“OpenAI recently shared that their weekly user base has grown to 800 million, enterprise customers has increased to 1 million and that their gross margins were healthy,” Kress said. She added that the two companies are “working on a strategic partnership” and that Nvidia is “focused on helping them build and deploy at least 10 gigawatts of AI data centers.”
And Huang said, “Everything that OpenAI does runs on Nvidia today.”
An OpenAI spokesperson didn’t provide a comment, but pointed to Huang’s commentary on the call, including his description of OpenAI as a “once-in-a-generation company” and his expectation that the investment will “translate to extraordinary returns.”
There’s no question that as OpenAI builds out data centers, it will keep spending money on Nvidia’s chips. But OpenAI has also partnered with Nvidia rival Advanced Micro Devices, agreeing last month to deploy 6 gigawatts of AMD’s Instinct GPUs over multiple years and across multiple generations of hardware, beginning in the second half of next year.
The AMD agreement has one critical component that Nvidia’s lacks: signatures.
As part of the pact, the company has issued OpenAI a warrant for up to 160 million shares of the chipmaker’s common stock, with vesting milestones tied to deployment volume and AMD’s share price. That agreement was signed on Oct. 5, by AMD CFO Jean Hu and OpenAI CFO Sarah Friar.
— CNBC’s MacKenzie Sigalos and Ashley Capoot contributed to this report.
Every weekday, the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Friday’s key moments. 1. Stocks were higher Friday, led by a rebound in Big Tech as the AI trade attempted to regain momentum. Nvidia stock jumped nearly 3% after Bernstein noted it is trading at 25 times forward earnings, landing it in the eleventh percentile of valuation over the past decade. That’s cheap for the AI chip leader. Market strength carried across the semiconductor group, with Broadcom , AMD , and Micron all charging higher. A stock that did not participate in the rally was Nike . Shares of the sneaker and sportswear maker are down 9.5% a day after it reported solid earnings results but disappointing guidance. 2. Jim also highlighted the standout year for Wells Fargo under CEO Charlie Scharf. “Don’t bet against Charlie,” he said after The Wall Street Journal reported late Thursday that the bank climbed to No. 7 in the U.S. M & A league table, compared to No. 14 last year. The bank advised on high-profile deals, including Netflix ‘s bid for Warner Brothers and Union Pacific ‘s bid for Norfolk Southern . Financial stocks have been on a tear this year, prompting us on Friday to trim our position in Capital One and lock in significant gains. On Thursday, we increased the price target for Capital One to $270 from $250 and downgraded our rating to a 2. In addition, we increased Goldman Sachs ‘ price target to $925 from $850 and Wells Fargo’s price target to $96 from $90. 3. Boeing shares climbed 2.6% on Friday after JPMorgan reiterated the stock as a top pick while increasing its price target to $245 from $240, implying a 15% upside from its current price of $213 per share. Analysts argue the aerospace manufacturer’s path to growth is simple: build more planes and deliver them. While cash flow expectations have come down, JPMorgan believes there’s visibility to at least $10 billion by the end of the decade. Jim said he likes Friday’s stock price for a buy. He called Boeing a “long-term idea” given the strength in travel. 4. Stocks covered in Friday’s rapid fire at the end of the video were: FedEx , Conagra Brands , KB Home , Oracle , and CoreWeave . (Jim Cramer’s Charitable Trust is long NVDA, AVGO, WFC, GS, COF, BA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Sundar Pichai, chief executive officer of Alphabet Inc., during the Bloomberg Tech conference in San Francisco, California, US, on Wednesday, June 4, 2025.
David Paul Morris | Bloomberg | Getty Images
With the AI talent wars heating up between companies like OpenAI, Meta and Anthropic, one way Google has been competing is by aggressively rehiring former employees.
Some 20% of software engineers working on artificial intelligence that Google hired in 2025 were so-called boomerang employees, an increase from prior years, CNBC has learned. A Google spokesperson confirmed the statistic remains accurate as of December, and said the company saw a jump in the number of AI researchers coming from major competitors compared to 2024.
“We’re energized by our momentum, compute, and talent — engineers want to work here to keep building groundbreaking products,” the spokesperson said in a statement.
John Casey, Google’s head of compensation, recently told employees in a meeting about the rehiring. Casey said AI-focused software engineers are drawn to Google’s deep pockets and hefty computational infrastructure that’s needed to perform advanced AI work, according to audio reviewed by CNBC.
Google has a large pool of ex-employees to mine, particularly after its largest ever round of layoffs in early 2023, when parent company Alphabet cut 12,000 jobs, reducing headcount by 6%. That followed a market downturn driven by soaring inflation and rising interest rates. Google has since continued with rolling layoffs and buyouts.
Across the industry, employee boomerangs are up, according to data published earlier this year by ADP Research, with the sector it classifies as information showing the starkest numbers.
Google has been racing to catch up in generative AI after a slow start that followed OpenAI’s release of ChatGPT in late 2022. After fumbling a number of product rollouts, the company has bounced back this year, thanks to hefty investments in AI infrastructure and the success of its Gemini app. Google announced its latest model, Gemini 3, last month.
Alphabet’s stock price is up more than 60% this year, outperforming all of its megacap peers.
As a historical hotbed of engineering and innovation, Google has long been a place where competitors have turned to try and poach talent. That’s still the case.
Earlier this year, Microsoft hired around two dozen employees from Google’s DeepMind AI research lab, CNBC reported in July. OpenAI, meanwhile, has opened its wallets wide, along with Meta. OpenAI CEO Sam Altman told employees in June that Meta had been offering $100 million signing bonuses, and that he was aggressively trying to retain staffers.
Late last year, Google brought back a major figure in AI: Noam Shazeer.
Shazeer and Daniel De Freitas left Google in 2021 to start AI platform Character.AI, reportedly departing after Google rebuffed their attempts to try and get the company to push its internal chatbot forward.
Along with other members of the Character.AI research team, Shazeer and De Freitas rejoined DeepMind in August 2024 under a licensing deal for the startup’s technology.
Over the last year, Google has taken more risks, shipping products more quickly, even if they aren’t viewed as completely ready. Google has also made a companywide effort to remove bureaucracy, enacting widespread employee buyouts and eliminating more than one-third of its managers overseeing small teams, CNBC reported in August.
Google co-founder Sergey Brin, who came out of retirement in 2023, has at times personally reached out to prospective candidates to recruit them, according to people familiar with the matter who asked not to be named because they weren’t authorized to speak to the media. Meta CEO Mark Zuckerberg has also reportedly reached out to researchers on behalf of his company.
The companies said the deal is an expansion of their existing strategic partnership and will deepen their engineering collaboration.
Palo Alto Networks is now using Google’s Gemini artificial intelligence models to power its copilots, and it is also using Google Cloud’s Vertex AI platform, according to a release.
“Every board is asking how to harness AI’s power without exposing the business to new threats,” BJ Jenkins, president of Palo Alto Networks, said in a statement. “This partnership answers that question.”
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Palo Alto Networks, which offers a range of cybersecurity products, already has more than 75 joint integrations with Google Cloud and has completed $2 billion in sales through the Google Cloud Marketplace.
As part of the new phase of the partnership, Palo Alto Networks customers will be able to protect live AI workloads and data on Google Cloud, maintain security policies, accelerate Google Cloud adoption and simplify and unify their security solutions, the companies said.
Shares of Palo Alto Networks were up 1% on Friday. Google shares were mostly flat.
“This latest expansion of our partnership will ensure that our joint customers have access to the right solutions to secure their most critical AI infrastructure and develop new AI agents with security built in from the start,” Google Cloud President Matt Renner said in a statement.