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Nvidia has announced plans to invest up to $100 billion in OpenAI in a bid to establish cutting-edge data centers powered by chipmaker’s AI processors.
In the strategic partnership, both AI titans will join hands to build at least 10 gigawatts of data centres equipped with millions of Nvidia GPUs, leading to bridge OpenAI’s growing computing needs for new AI models.
Jensen Huang, CEO of Nvidia, in an interview told CNBC’s Jon Fortt the viability of the project that will reshape the global artificial intelligence race.
“This is a giant project and an investment in monumental in size,” Huang said while highlighting the close link between Nvidia and OpenAI.
"Everything starts with computers. 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," OpenAI CEO Sam Altman said in a statement.
OpenAI will receive Nvidia’s first investment of $10 billion after the completion of the first gigawatt, as reported by CNBC. The investments will be made at the current valuation rate of OpenAI.
Following the deal, Nvidia’s stocks witnessed a massive surge as much as 4.4 percent, adding $170 billion valuation to the company’s market cap.
In late 2026, it is expected that Nvidia will start delivering hardware.
The demands for Nvidia’s chips rose with the release of the first ChatGPT model in 2022 as OpenAI heavily relies on GPUs for the development of its AI models and software.
