OpenAI’s once-rapid fundraising pace has slowed as major backers like Nvidia and Microsoft reassess their commitments amid growing financial strain. Nvidia CEO Jensen Huang announced a new $30 billion investment but cautioned it could be the company’s last before OpenAI goes public. The AI firm, led by Sam Altman, has raised over $168 billion but remains unprofitable and burdened by roughly $100 billion in debt. Analysts warn that the scale of OpenAI’s infrastructure spending and uncertain revenue model pose significant risks.

Nvidia’s and Microsoft’s shares have both fallen following strong earnings reports, reflecting investor unease about their exposure to OpenAI and the broader AI sector. Experts cited parallels to the dot-com bubble, noting inflated valuations and circular investment patterns, such as OpenAI’s commitments to buy Nvidia chips and cloud services from Microsoft. Financial analysts estimate OpenAI would need to generate $200 billion in annual revenue by 2030 to justify its projections, while lawsuits and operational costs continue to mount.

Observers suggest that while a potential OpenAI failure would not cripple Nvidia or Microsoft, it could ripple through the tech ecosystem, affecting partners like Disney and fueling concerns of an AI investment bubble.