Nvidia has agreed to invest up to $100 billion in OpenAI, a partnership that shows the growing demand for artificial intelligence infrastructure. The deal, which is among the largest of its kind in the AI space, is expected to help OpenAI expand its computing power by building new data centres equipped with Nvidia’s advanced chips.
According to Bloomberg, the two companies said on Monday that they had signed a letter of intent to move ahead with the plan. People familiar with the discussions said the investment would be released in stages, starting with $10 billion when OpenAI puts its first gigawatt of computing power into use. Nvidia, in return, will also receive equity in OpenAI.
The project aims to create data centres with a combined capacity of 10 gigawatts, dedicated to training and running OpenAI’s large AI models. These centres will use Nvidia’s latest processors, which have become the most sought-after chips in the AI industry.
Explaining the importance of the tie-up, OpenAI CEO Sam Altman said, “Everything starts with compute. Compute infrastructure will be the basis for the economy of the future, and we will utilise what we’re building with Nvidia to both create new AI breakthroughs and empower people and businesses with them at scale.”
The move comes at a crucial time for OpenAI. Its popular chatbot, ChatGPT, is used by nearly 700 million people every week. Running such services requires enormous computing resources, and in the past, the company has struggled with shortages during major product launches. Altman has already hinted that OpenAI will introduce new “compute-intensive” products in the coming weeks, which will need even more infrastructure.
For Nvidia, the partnership strengthens its role at the centre of the AI boom. The company has been using its financial strength to ensure its chips remain the backbone of AI systems worldwide. By securing OpenAI as a key customer despite the latter’s interest in designing its own hardware, Nvidia could further cement its dominance even as competitors push rival technologies.
Neither company has shared details on the exact timeline of the investment, but they confirmed that negotiations are underway to finalise the agreement soon. A Nvidia spokesperson declined to comment beyond the joint statement.
News of the deal has already boosted market sentiment. Nvidia’s shares gained as much as 4 per cent in New York trading on Monday, taking its total rise this year to around 36 per cent. The sharp rally shows how closely investors are watching the company’s moves in AI, with the sector seen as a major driver of future growth.
