Nvidia CEO Jensen Huang appears unconcerned about OpenAI’s efforts to develop its own AI chips, arguing that Nvidia’s decades of experience and massive scale give it a significant advantage in the increasingly competitive AI hardware industry.
During an interview with CNBC, Huang was asked whether he would take issue with OpenAI, one of Nvidia’s major customers, developing technology that could eventually compete with the company’s products. Huang dismissed the concern, saying Nvidia has seen numerous similar chip projects emerge over the years.
He said Nvidia is comfortable facing competition and pointed out that developing advanced AI processors is extremely difficult, noting that the company has been working in the field for 33 years.
Huang also said Nvidia’s ability to develop technology at scale and provide the infrastructure required by leading AI companies gives it confidence despite the growing number of competitors.
He argued that the expanding list of rival AI chips and startups has not weakened Nvidia’s position. Instead, he said the company continues to increase its share of the AI market, while its growth is accelerating and its technological lead is becoming stronger.
His comments come as OpenAI and other major AI companies seek to reduce their reliance on Nvidia GPUs. OpenAI has been developing its own AI accelerator technology, potentially adding another major competitor to a market where Nvidia currently has a dominant position.
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Huang’s confidence comes alongside Nvidia’s strong financial performance. The company reported $96.2 billion in revenue for the second quarter of fiscal 2027, more than double the figure recorded a year earlier. Its data centre business generated $89 billion, representing a 117% increase.
Nvidia has also expanded beyond selling chips to become an important financial participant in the broader AI ecosystem. The company has invested in AI companies such as OpenAI and Anthropic and has helped finance major data centre developments.
However, this strategy has drawn criticism from some investors. They have questioned whether Nvidia’s financing arrangements could create a cycle in which AI companies use funding backed by Nvidia to purchase Nvidia’s own hardware.
Huang defended the strategy, saying frontier AI companies require enormous amounts of capital to develop and operate their systems. He also noted that some of these companies face challenges in raising money at low costs because they do not yet have long-established financial track records.
