In a significant development for the artificial intelligence sector, Nvidia’s CEO Jensen Huang recently spoke with CNBC’s Jim Cramer about a groundbreaking direct partnership with OpenAI, the renowned creator of ChatGPT. Huang described this collaboration as a pivotal moment, marking the first time that OpenAI will purchase directly from Nvidia, diverging from the previous model where a cloud service provider managed these transactions.
“This is a partnership that, for the first time, OpenAI is going to buy directly from us,” Huang stated, emphasizing the importance of this shift. He explained that typically, cloud service providers acquire the necessary hardware from Nvidia, which is then rented out to companies like OpenAI. The direct arrangement suggests a deeper integration of Nvidia’s technology within OpenAI’s infrastructure.
In September, Nvidia unveiled plans to invest up to $100 billion in OpenAI, aimed at bolstering its artificial intelligence data center capabilities. The joint endeavor seeks to deploy Nvidia systems that will require a staggering 10 gigawatts of power—an amount equivalent to sourcing between 4 million and 5 million GPUs. This ambitious capacity underlines the escalating demand for AI technology and the hardware that supports it.
The partnership comes in the context of Nvidia and OpenAI being at the forefront of the AI explosion. Nvidia’s chip sales soared following the release of ChatGPT three years ago, which catalyzed mainstream interest in generative AI. Since then, Nvidia’s market capitalization has seen remarkable growth, tripling in recent years and positioning the company as the most valuable in the market, even surpassing the $4 trillion mark for the first time in stock history.
During the interview, which also aired during the evening segment of “Mad Money,” Huang touched on other pertinent issues affecting the tech landscape, including trade relations with China and collaborative efforts with key competitors such as AMD and Intel. He highlighted that the partnership with OpenAI is “incremental” to Nvidia’s ongoing collaborations with other prominent AI companies like Oracle and CoreWeave.
“This partnership is going to help them build an AI infrastructure that they operate themselves, setting them up for the future as they transition to their own cloud operations,” Huang elaborated, indicating a long-term vision for both companies in the rapidly evolving AI ecosystem.
As Nvidia continues to fortify its position in the market, this newly established partnership with OpenAI could serve as a catalyst for future advancements and innovations in artificial intelligence.
