Nvidia to Invest $100 Billion in OpenAI for AI Infrastructure
In a landmark move set to accelerate the global AI race, Nvidia is planning to invest up to $100 billion in OpenAI, the creator of ChatGPT. The investment will bolster OpenAI's computing power with advanced data center chips, significantly expanding its AI infrastructure and solidifying Nvidia's position as a key player in the AI revolution. The partnership aims to deploy at least 10 gigawatts (GW) of Nvidia systems for OpenAI’s AI infrastructure.
Strategic Partnership Details
The deal is structured around a dual transaction. OpenAI will purchase Nvidia chips, while Nvidia will acquire a non-controlling stake in the AI startup. The initial investment of $10 billion will be triggered upon signing a definitive agreement for OpenAI to purchase Nvidia chips. The first phase of deployment, representing approximately 1 GW of capacity, is expected to be completed by the second half of 2026.
Jensen Huang, founder and CEO of Nvidia, emphasized the importance of the partnership, stating that this investment marks the "next leap forward – deploying 10GW to power the next era of intelligence." This move builds on a decade-long relationship between the two companies, beginning with Nvidia's first DGX supercomputer that powered the early research behind ChatGPT.
Driving AI Innovation and Infrastructure
The partnership will enable OpenAI to scale its infrastructure and meet the surging demand for its services, which now serve over 700 million weekly active users. Sam Altman, co-founder and CEO of OpenAI, highlighted that "compute infrastructure will be the basis for the economy of the future," emphasizing the vital role of the collaboration with Nvidia in creating new AI breakthroughs.
OpenAI's Greg Brockman said “We’ve been working closely with Nvidia since the early days of OpenAI,” noting the reliance on Nvidia’s platform to create the AI systems used by hundreds of millions.
In addition to this significant investment in OpenAI, Nvidia has recently committed $5 billion to Intel, showing a commitment to bolstering the AI hardware landscape. The company has also pledged £2 billion to support the UK's AI startup ecosystem.
Competition and Market Dynamics
While this partnership strengthens the US's position in AI, competition is increasing, particularly from China with the rise of DeepSeek-R1. Nvidia itself is facing pressure from both the US and Chinese governments, including scrutiny regarding anti-monopoly regulations and export licenses for AI chips.
The deal is also occurring as the attorneys general of California and Delaware have expressed "serious concerns" about the safety of ChatGPT, especially for children and teens.
| Key Partnership Aspects | Details |
|---|---|
| Investment Amount | Up to $100 Billion |
| Chip Deployment | 10 GW of Nvidia systems |
| First Phase Completion | Second half of 2026 |
| Strategic Goal | Advance AI infrastructure and innovation |
