Nvidia reduced its $250 billion commitment to OpenAI by half. Following that, it demonstrated to investors its portfolio.

      Anissa Gardizy wrote about the cut for The Wall Street Journal on August 14. According to the newly proposed terms, Nvidia would initially commit to backing only half of the 10GW project, with a decision on the remainder being deferred. A deal could potentially be finalized as early as this weekend. The Journal mentions that Nvidia adjusted the terms to alleviate investor concerns regarding its risk exposure. Reuters reported on the story the same evening. OpenAI is still working on finalizing a binding lease for the entire 10GW project. SB Energy, a subsidiary of SoftBank, is in charge of site development, which would represent the largest data center project announced globally.

      The project's scale justifies the significant commitment. The initial phase, approximately 800MW, is expected to be completed by 2028, with total project costs exceeding $500 billion, including silicon expenses. OpenAI does not hold an investment-grade credit rating, prompting lenders to assess the debt against Nvidia's standing instead.

      The figure fluctuated because of changes in the share price. This desk reported on the $250 billion backstop on July 27, the day after it was first revealed by the Journal. It would have represented the largest financial guarantee ever discussed between private entities. Following that initial Journal report, Nvidia's shares dropped by 5%, and the guarantee's size has now been halved. Observing those two facts sequentially reveals a clear narrative: the market valued the commitment, expressed dissatisfaction with its price, leading to a reduction in the promise. Notably, the Ohio campus itself saw no changes within three weeks.

      The backstop does not encompass the entirety of the agreement. There is a separate financing agreement for OpenAI’s chip procurement that might total $350 billion over the complete project, which Nvidia would help facilitate but not guarantee outright. Goldman Sachs is advising SB Energy, while Morgan Stanley is advising Nvidia.

      The power aspect of the deal is not being contested. It is controlled by the U.S. government, and Japan is providing separate funding through a recent trade agreement.

      This situation has historical context as well. Last September, Nvidia and OpenAI announced an agreement for at least 10GW, with Nvidia poised to invest up to $100 billion. That deal stalled when some within Nvidia raised concerns, marking the second time this partnership has been scaled down.

      On the same week, Nvidia submitted a 13F filing on August 14, revealing its U.S. equity holdings for the quarter ending June 30. Both CNBC and Bloomberg reported on it. The headline figure was SpaceX, with 122.8 million Class A shares valued at approximately $21 billion, making it Nvidia's second-largest investment.

      Intel represents a larger position. Nvidia owned 214.8 million Intel shares, worth about $30 billion at the end of June, stemming from a $5 billion investment. A quarter earlier, that stake was valued at around $9.5 billion.

      That increase can be attributed to Intel's performance rather than Nvidia's actions. Over the past year, Intel's stock has nearly quintupled as a result of its foundry turnaround, with the $5 billion investment made less than a year ago. Nvidia's investment capitalized on a recovery that had already occurred, which is distinct from fostering it.

      The rest of the holdings are minimal. Nvidia also has stakes in Coherent, Generate Biomedicines, Nebius, Nokia, and Synopsys. It ranks as the sixth-largest investor in SpaceX, where Musk's holding amounts to about $850 billion and Alphabet’s is approximately $78 billion.

      There is a disagreement about the origin of the SpaceX shares. CNBC claims the shares resulted from Nvidia's $10 billion investment in xAI in January, which was part of a $20 billion funding round. In contrast, Bloomberg states that Nvidia invested as much as $2 billion into xAI throughout 2025, via a financing arrangement that combined equity and debt through a special purpose vehicle designed to acquire its processors.

      These differing figures refer to distinct years, and we do not choose one over the other. SpaceX later acquired xAI in February at a valuation of $1.25 trillion, which is how an xAI stake transitioned into a SpaceX stake.

      Both stakes have experienced fluctuations. A 13F filing is a snapshot as of June 30 and can quickly become outdated. SpaceX shares ended Friday at $140, down from $170.86 at the end of June, which means that stake is now valued at approximately $17.2 billion. Intel has also dropped, leaving its worth around $22 billion.

      This translates to about $12 billion in value lost on paper in six weeks across two positions. This desk has covered the post-IPO decline in June when the stock decreased by 18% from its peak.

      Nvidia is not alone in marking its investment in SpaceX this year. In July, Alphabet reported $94.1 billion worth