Nvidia to Invest $100 Billion in OpenAI
⬤ Nvidia has revealed plans for a gradual investment of around 100 billion dollars in OpenAI, marking one of the largest strategic funding deals in the history of artificial intelligence.
⬤ Nvidia is currently the world’s largest producer of AI chips, while OpenAI leads the industry in AI software development.
⬤ In a notable twist, the funds Nvidia invests in OpenAI will be used by OpenAI to purchase Nvidia’s own chips.
Nvidia announced that it will invest up to 100 billion dollars in OpenAI and supply it with data center hardware, underscoring the deepening partnership between two of the most influential players in the global AI race.
The move highlights the growing overlap of interests among the technology giants building advanced AI systems. For Nvidia, the deal provides a financial stake in one of its biggest customers, while for OpenAI, it brings new liquidity and guaranteed access to cutting-edge processors needed to maintain its market dominance. Some analysts, however, have warned that the collaboration could raise competition concerns.
According to sources cited by Reuters, the agreement involves two overlapping stages. Nvidia will first invest in non-voting shares once the deal is finalized. OpenAI will then use those funds to purchase Nvidia chips.
Sam Altman, CEO of OpenAI, commented, “Everything starts with computing. The computing infrastructure will form the foundation of the future economy, and we will use what we are building with Nvidia to drive new breakthroughs in AI and empower individuals and businesses on a massive scale.”
The two companies have signed a preliminary, non-binding agreement to deploy at least 10 gigawatts of Nvidia systems for OpenAI. Both sides expect to finalize the partnership details in the coming weeks. Following the announcement, Nvidia’s stock rose 4.4 percent to a record high, while Oracle shares climbed 6 percent, reflecting investor enthusiasm for the broader AI infrastructure boom. Oracle is collaborating with OpenAI, SoftBank, and Microsoft on “Project Stargate,” a 500 billion dollar initiative to build next-generation AI data centers worldwide.
According to reports, Nvidia will begin with an initial investment of 10 billion dollars once the final agreement is signed. The company plans to start hardware deliveries in late 2026, deploying the first gigawatt of computing capacity in the second half of that year through its upcoming platform, Vera Rubin.
Analysts have questioned the circular nature of the deal, noting that part of Nvidia’s investment will flow back to it through chip sales, potentially inviting scrutiny under antitrust regulations. Despite this, sources indicate that OpenAI still intends to pursue its in-house chip design efforts, similar to initiatives by Google and Amazon. The company is reportedly working with Broadcom and TSMC to develop custom processors, a plan that will continue alongside the Nvidia partnership.
The deal is the latest in a growing series of alliances among major technology firms. Microsoft has invested billions in OpenAI since 2019. Nvidia recently announced a collaboration with Intel on AI chips, invested 5 billion dollars in Intel earlier this month, and supported OpenAI’s 6.6 billion dollar funding round in October 2024.
