Chip designer Nvidia has announced a monumental investment of up to $100 billion in OpenAI, marking a strategic partnership aimed at developing advanced artificial intelligence data centers and the pursuit of AI superintelligence. The details of this agreement were unveiled on Monday.
In a move that underscores the monumental scale of this collaboration, OpenAI will utilize a substantial infrastructure of at least 10 gigawatts worth of Nvidia systems for the training and operation of AI models. To put this into perspective, 10 gigawatts could power approximately five Hoover Dams. The initial deployment of Nvidia’s technology is expected to launch in the latter half of 2026.
Nvidia’s CEO Jensen Huang highlighted the financial considerations involved in this expansion, stating that the construction of one gigawatt of data center capacity ranges from $50 billion to $60 billion, with Nvidia’s chips and systems comprising about $35 billion of that total cost. Following the announcement, Nvidia’s shares climbed by 3.6%, approaching their highest levels recorded this year.
OpenAI is on the verge of a potential increase in valuation, which could reach $500 billion following a forthcoming $6 billion secondary share selloff. This move could elevate the startup to the status of the world’s most valuable private company. The demand for robust data center infrastructure is critical for OpenAI, particularly as it experiences user engagement soaring up to 700 million weekly, all amidst fierce competition from entities such as Elon Musk’s xAI.
In the announcement, OpenAI CEO Sam Altman emphasized the importance of compute infrastructure, declaring it “will be the basis for the economy of the future,” as the organization sets its sights on eventually unveiling an AI superintelligence capable of surpassing human intelligence.
Nvidia joins Microsoft as one of the few investors providing both services and capital to OpenAI. Microsoft has invested approximately $13 billion in the startup and is likely to receive an equity stake as OpenAI transitions into a for-profit entity. OpenAI remains at the forefront in the race for AI valuation, with other competitors like Musk’s xAI reportedly aiming to secure $10 billion in funding that would position it at a valuation of $200 billion, surpassing Anthropic’s $183 billion.
