Chipmaker Nvidia announced plans to invest up to $100 billion in OpenAI, marking a significant collaboration between two prominent entities in the artificial intelligence sector. This partnership is poised to enhance OpenAI’s data center capabilities through the provision of Nvidia’s chips, with deliveries expected to commence as early as late 2026.
According to sources close to OpenAI, the agreement consists of two interconnected transactions. OpenAI will purchase chips from Nvidia in a cash arrangement while Nvidia will acquire non-controlling shares in OpenAI. The initial phase of Nvidia’s investment, $10 billion, will take effect once both companies finalize a definitive agreement regarding the chip procurement.
Despite inquiries for clarification, Nvidia has not commented further on the deal. This alliance comes amid a series of significant investments by major tech firms in OpenAI. Microsoft has been heavily investing in the startup, and a separate agreement was recently reached between Nvidia and Intel for the development of AI chip technology.
The partnership includes a commitment to supply OpenAI with a minimum of 10 gigawatts of Nvidia chips for its AI infrastructure. Details are expected to be finalized in the upcoming weeks, with the first operational phase targeted for the latter half of 2026. OpenAI CEO Sam Altman emphasized the importance of computing resources, stating that such infrastructure will be foundational to the future economy. He affirmed that Nvidia’s technology will enable new breakthroughs in AI while empowering users and businesses on a large scale.
Following the announcement, Nvidia’s stock prices climbed by 4.4%, while Oracle’s shares, associated with partnerships involving OpenAI and other firms, rose nearly 5%. This investment in OpenAI follows Nvidia’s recent $5 billion commitment to the financially troubled chipmaker Intel.
In parallel, OpenAI and Microsoft have recently established non-binding terms that could facilitate OpenAI’s transition to a for-profit entity. Nvidia had previously invested in OpenAI during a $6.6 billion funding round in October 2024. However, this latest substantial investment by Nvidia may attract attention from antitrust regulators due to the growing influence of these companies in the AI sector.
The current regulatory landscape under the Biden administration has intensified scrutiny around competition within the tech industry. In June 2024, the Justice Department and the Federal Trade Commission initiated discussions that could lead to antitrust investigations focusing on the prominent roles played by Microsoft, OpenAI, and Nvidia in shaping the AI landscape.
