In a significant development highlighting the growing demand for artificial intelligence infrastructure, Nvidia has committed to investing up to $100 billion in OpenAI. This agreement, one of the largest in the AI sector, will allow OpenAI to greatly enhance its computing capacity by constructing new data centres utilizing Nvidia’s advanced processors. The deal, as reported by Bloomberg, was confirmed through a joint announcement on Monday. Both companies signed a letter of intent that outlines the plan, with an initial funding of $10 billion expected to be released once OpenAI activates its first gigawatt of computing power. In exchange, Nvidia will obtain equity in OpenAI, further aligning the interests of the two AI leaders.
The ambitious initiative aims to generate 10 gigawatts of computing capacity specifically for training and operating OpenAI’s increasingly sophisticated AI models. These new data centres will depend on Nvidia’s processors, which are widely recognized as essential to the current AI revolution. For OpenAI, this investment is timely, as its flagship product, ChatGPT, now draws nearly 700 million weekly users, placing immense pressure on its infrastructure. OpenAI has encountered shortages during prior rollouts, and with CEO Sam Altman suggesting the development of new “compute-intensive” products, expanding its capacity has become critical. Altman explained the strategic importance of the partnership, stating, “Everything starts with compute.
Compute infrastructure will be the basis for the economy of the future, and we will utilize what we’re building with Nvidia to create new AI breakthroughs and empower people and businesses with them at scale.” For Nvidia, already the most valuable company in the world, this partnership reaffirms its pivotal role in the AI ecosystem. The chipmaker’s financial prowess and unparalleled dominance in high-performance processors have made its products essential for AI research and deployment globally. By securing OpenAI—a company that has considered designing its own hardware—as a long-term partner, Nvidia effectively protects its position at the core of the AI boom. This deal may also deter competing chipmakers looking to enter the profitable AI market.
Following the announcement of the investment, financial markets reacted positively, with Nvidia’s stock rising by as much as 4 percent in New York trading on Monday, bringing its gains this year to nearly 36 percent. This strong rally underscores how closely investors are monitoring Nvidia’s strategic initiatives in AI, which is seen as one of the most transformative growth sectors of the decade. Although neither company has provided a specific timeline for finalizing the investment, both confirmed that negotiations are ongoing and that a conclusive agreement will be announced soon.
As AI adoption accelerates across various industries, the partnership between Nvidia and OpenAI sets a new standard for the lengths to which companies are willing to go to secure the compute power that could shape the future economy.