Nvidia-OpenAI both need each other amid competition from Google: Big Technology's Alex Kantrowitz

Watch on YouTube ↗  |  February 03, 2026 at 22:01  |  4:32  |  CNBC
Speakers
Alex Kantrowitz — Founder of Big Technology

Summary

Alex Kantrowitz of Big Technology discusses the stalled Nvidia-OpenAI deal, arguing the two companies still need each other because both face Google competition in AI models and hardware. He notes friction and concerns about OpenAI's business, and that the $100 billion investment is only an intent rather than a commitment. He also warns that AI market optimism faces significant uncertainty and volatility because no one knows where profits will accrue.

  • Nvidia and OpenAI have a strategic need to partner against Google.
  • Google competes with OpenAI in models and Nvidia in hardware.
  • The $100 billion Nvidia-OpenAI investment is an intent, not a commitment.
  • Jensen Huang reportedly has concerns about OpenAI's business.
  • Market may have over-assumed commitment in AI deals.
  • AI chip, model, and software companies face major unpredictability.
  • Market readjustments and volatility are likely to continue.
Ideas
Alex Kantrowitz Founder of Big Technology 0:25
Nvidia, OpenAI need each other despite friction
Nvidia and OpenAI need each other because both face Google competition: OpenAI competes with Google in AI models and Nvidia competes with Google in AI hardware, so teaming up is the way to beat Google. However, the $100 billion investment is only an intent, there is friction, and Jensen Huang reportedly has concerns about how OpenAI does business, so the market may have over-assumed commitment.
NVDA HIGH
Alex Kantrowitz Founder of Big Technology 0:28
Google pressures rivals in models, hardware
Google is competing with OpenAI in AI models and with Nvidia in AI hardware, making it a central competitor that is pressuring both companies and forcing them to team up; this is a key competitive setup to monitor for Alphabet.
GOOGL MED
Alex Kantrowitz Founder of Big Technology 3:17
AI optimism faces unpredictable, volatile readjustments
The market has been overly optimistic that AI will work out as companies say; there is huge unpredictability across chip makers, foundational model builders, and software companies, nobody knows who will make the most profit or how AI will disrupt industries, so the market will keep readjusting and volatility will continue.
AI-SECTOR HIGH
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This CNBC video, published February 03, 2026, features Alex Kantrowitz discussing NVDA, GOOGL, AI-SECTOR. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Alex Kantrowitz  · Tickers: NVDA, GOOGL, AI-SECTOR