Nvidia commits $100bn to OpenAI in landmark AI partnership
Nvidia to provide OpenAI with data centre chips. The deal affects non-voting shares and the acquisition of chips, which could face antitrust scrutiny due to Nvidia’s investment in the transaction.
A Strategic Alliance in the AI Race
In one of the largest tech investments to date, Nvidia announced plans to invest up to $100 billion in OpenAI while also supplying the company with its advanced data center chips. The tie-up between the world’s leading AI chipmaker and one of the most influential AI developers highlights how closely the industry’s biggest players are becoming intertwined as the race to dominate artificial intelligence accelerates.
The deal will see Nvidia acquire non-voting shares in OpenAI once finalized, while OpenAI will reinvest the cash into purchasing Nvidia’s state-of-the-art chips. This structure ensures both companies stand to benefit—Nvidia secures a financial stake in AI’s most prominent player, and OpenAI gains the computing power necessary to maintain its lead in an increasingly competitive field.
Compute Power at the Core
“Everything starts with compute,” said OpenAI CEO Sam Altman in a statement. “Compute infrastructure will be the basis for the economy of the future, and we will utilize what we’re building with Nvidia to both create new AI breakthroughs and empower people and businesses with them at scale.”
As part of the partnership, Nvidia and OpenAI have signed a letter of intent to deploy at least 10 gigawatts of Nvidia systems—enough energy to power more than 8 million U.S. households. Once terms are finalized, Nvidia is expected to begin with an initial $10 billion investment.
Market Ripples and Global Ambitions
The announcement sparked immediate market reaction, with Nvidia shares climbing 4.4% to a record intraday high and Oracle, a data center builder partnering with OpenAI, gaining around 6%. Oracle is also collaborating with SoftBank and Microsoft on “Stargate,” a $500 billion project to build massive AI data centers worldwide.
OpenAI, most recently valued at $500 billion, will use the partnership to strengthen its infrastructure as rivals including Anthropic, Google DeepMind, and xAI ramp up efforts to capture AI market share.
Competition Concerns Loom
While the partnership promises unprecedented computing scale, industry watchers warn it may raise antitrust concerns. By aligning two of the most influential forces in AI, competitors could face higher barriers to entry in an already resource-intensive sector.