Chipmaker Nvidia has confirmed it plans to invest up to $100 billion in OpenAI for a major stake that will also fuel its computing power.
Nvidia revealed major plans on Monday to invest up to $100 billion in OpenAI in a groundbreaking deal that has made headlines across the global artificial intelligence (AI) sector. Through this landmark partnership, OpenAI will pay Nvidia in cash for chips, while Nvidia will invest in non-controlling shares at the ChatGPT owner.
It will help fuel OpenAI’s next-generation infrastructure with Nvidia’s high-speed chips, providing computing power needed for future large-scale data centres. Nvidia shares closed almost 7% higher as markets reacted positively to news of the announcement.
The arrangement will involve two linked transactions, with OpenAI paying Nvidia in cash for chips while Nvidia secures non-controlling shares. The initial $10 billion will be unlocked when both companies reach a definitive agreement for OpenAI to purchase Nvidia’s hardware.
This latest tie-up adds to a wave of high-profile collaborations, including long-running investments from Microsoft and last week’s Nvidia-Intel agreement centred on AI chip development.
It also backed OpenAI in a $6.6 billion funding round in October 2024. Nvidia’s continued expansion signals its clear intent to dominate AI computing, despite competition from hyperscalers and emerging chip startups.
What is the Nvidia and OpenAI reaction?
Jensen Huang, founder and CEO of Nvidia stated how his company and OpenAI have “pushed each other for a decade, from the first DGX supercomputer to the breakthrough of ChatGPT. He added that the investment and infrastructure partnership marks “the next leap forward – deploying 10 gigawatts to power the next era of intelligence.”
Meanwhile, co-founder and president of OpenAI, Greg Brockman, noted the firm has been working closely with Nvidia since the early days of its operation. “We’ve utilised their platform to create AI systems that hundreds of millions of people use every day”, Brockman said.
“We’re excited to deploy 10 gigawatts of compute with Nvidia to push back the frontier of intelligence and scale the benefits of this technology to everyone.”
“Everything starts with compute,” OpenAI CEO Sam Altman said in a statement. “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.”
Could Nvidia’s large scale growth face scrutiny?
The sheer scale of Nvidia’s major OpenAI commitment could attract unwelcome antitrust scrutiny. The Justice Department and Federal Trade Commission previously reached a deal in mid-2024 that cleared the way for potential probes into the roles of Microsoft, OpenAI and Nvidia in the AI industry.
However, the Trump administration has so far taken a more relaxed stance to competition issues than the Biden regime. The incumbent US president has generally adopted a pro-business approach to regulations, removing traditional hurdles that would lead to a slowdown in AI growth.
This major Nvidia-OpenAI deal could alter the economic incentives of both companies, potentially solidifying Nvidia’s chip monopoly with OpenAI’s software lead. As a result, it could make it increasingly difficult for competitor firms like AMD to scale up in the future.
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