Nvidia Invests Up to $100 Billion in OpenAI for Massive AI Infrastructure Expansion
Nvidia (NVDA) stock saw a significant jump as the company announced plans to invest up to $100 billion in OpenAI. This partnership aims to construct massive AI data centers, utilizing Nvidia's chips and systems, to support the training and operation of OpenAI's next-generation AI models.
The Ambitious Scale of the Partnership
Nvidia stated that the partnership will facilitate OpenAI's deployment of "at least 10 gigawatts" of compute capacity powered by Nvidia's AI systems. This enormous computing power will be crucial for training and running ChatGPT's successors. For context, Meta's large AI data center, under construction in Louisiana, is projected to deliver only around two gigawatts.
According to CFRA analyst Angelo Zino, deploying 10 gigawatts of capacity would require approximately 4 to 5 million of Nvidia's GPUs. This highlights the sheer scale and ambition of the OpenAI-Nvidia deal, signaling a strong belief in the continued expansion of AI infrastructure needs.
Timeline and Technology
The initial phase of this massive compute capacity, leveraging Nvidia's upcoming Vera Rubin platform, is slated to go live in the second half of 2026. Nvidia CEO Jensen Huang characterized the Vera Rubin platform as a "big, big, huge step up" from the current generation Blackwell chips.
Strategic Investments and Market Signals
The OpenAI investment is part of Nvidia's broader strategy of rapidly expanding its AI investments. Recently, Nvidia acquired a $5 billion stake in Intel (INTC) to integrate Intel's CPUs into its AI systems. The company also intends to deploy tens of thousands of AI chips across the UK. Additionally, Nvidia signed a $6.3 billion deal with CoreWeave (CRWV), guaranteeing the purchase of unsold compute capacity.
“NVIDIA and OpenAI have pushed each other for a decade, from the first DGX supercomputer to the breakthrough of ChatGPT,” said Jensen Huang. Greg Halter, director of research at Carnegie Investment Counsel, commented, "While some still raise concerns about AI being a potential bubble, Nvidia’s investment signals that the need for AI infrastructure is real and still expanding."
OpenAI's Pursuit of Computing Power
OpenAI has been proactively securing more AI data center capacity amid concerns about profitability. The company recently agreed to a $300 billion deal with Oracle (ORCL) for computing power over the next five years, further underscoring its commitment to developing and deploying advanced AI models.
| Company | Investment/Deal | Details |
|---|---|---|
| Nvidia | Up to $100 Billion Investment | Investing in OpenAI to build 10 gigawatts of AI data centers. |
| Nvidia | $5 Billion Stake | Investment in Intel for CPUs in AI systems. |
| Nvidia | $6.3 Billion Deal | Deal with CoreWeave to purchase unsold compute capacity. |
| OpenAI | $300 Billion Deal | Deal with Oracle for computing power over five years. |
