Nvidia, the leading chipmaker in the artificial intelligence sector, has revealed plans to invest up to $100 billion in OpenAI, the creator of ChatGPT.
This strategic alliance aims to bolster OpenAI's computational capabilities through the provision of advanced data center chips essential for developing next-generation AI systems.
The partnership highlights the intensifying competition among tech giants in the global AI landscape, where emerging players from China pose significant challenges.
Nvidia's investment will initially involve $10 billion for non-voting shares in OpenAI, allowing the AI firm to procure Nvidia's high-performance hardware.
Deliveries of the new Vera Rubin platform are slated to begin in late 2026, with the first gigawatt of computing power operational by mid-year, equivalent to powering over 8 million U.S. households.
This deal intertwines the fortunes of two AI powerhouses, providing Nvidia with a direct financial interest in OpenAI while ensuring a steady demand for its chips.
OpenAI, recently valued at $500 billion and boasting over 700 million weekly active users, will leverage the funds to expand its infrastructure and pursue artificial general intelligence that benefits humanity.
The collaboration extends Nvidia's recent flurry of investments, including $5 billion in Intel and support for a $6.6 billion OpenAI funding round in October 2024.
It also builds on joint efforts with partners like Microsoft, Oracle, and SoftBank on ambitious projects such as the $500 billion Stargate initiative for global AI data centers.
Nvidia's shares surged up to 4.4% to a record high following the announcement, reflecting investor optimism about the firm's entrenched position in AI.
However, the scale of the investment raises potential antitrust concerns, potentially drawing scrutiny despite a more lenient regulatory environment under the Trump administration.
Analysts note that while the partnership accelerates AI advancements, it could reinforce Nvidia's chip dominance and complicate competition for rivals like AMD.
OpenAI continues its independent pursuits, including custom chip development with Broadcom and Taiwan Semiconductor, unaffected by this agreement.
In a statement, OpenAI CEO Sam Altman emphasized the foundational role of compute infrastructure in future economies.
The companies have signed a letter of intent targeting at least 10 gigawatts of Nvidia systems, with final details expected in the coming weeks.