Nvidia to Invest $100 Billion in OpenAI to Power Next-Generation AI Systems
Nvidia has announced plans to invest up to $100 billion in OpenAI, the company behind ChatGPT, in what both firms describe as a strategic partnership aimed at building the next wave of artificial intelligence infrastructure.
The deal will see Nvidia provide high-performance chips essential for training and operating large-scale AI models, alongside funding for data centers dedicated to OpenAI’s next-generation systems. The investment is Nvidia’s boldest move yet in the global race to dominate AI technology, where competition from Chinese firms is rapidly intensifying.
“This partnership represents the next leap forward,” said Jensen Huang, CEO of Nvidia. “It will power a new era of intelligence and accelerate the development of cutting-edge AI systems.”
OpenAI confirmed that the collaboration will also involve Microsoft, Oracle, SoftBank, and Stargate, all of whom are part of a growing network working to build what the companies describe as “the world’s most advanced AI infrastructure.”
The announcement follows a string of major Nvidia investments, including a $5 billion stake in Intel and a £2 billion commitment to the UK’s AI sector. Nvidia, now the world’s most valuable company, has seen its market influence soar as demand for AI chips surges globally.
OpenAI CEO Sam Altman said the partnership would allow both companies to “create new AI breakthroughs and bring them to people and businesses at scale.” OpenAI also revealed it has more than 700 million weekly active users, underscoring its rapid growth since the launch of ChatGPT.
However, the deal comes at a time of mounting geopolitical tensions. Nvidia is facing scrutiny from both US and Chinese authorities. Last week, China accused the company of violating its anti-monopoly laws, though no details were provided. Reports also indicate that Chinese regulators have ordered domestic tech firms to stop purchasing Nvidia AI chips.
This follows a separate agreement between Nvidia, rival chipmaker AMD, and the US government, which requires both firms to pay 15% of their Chinese revenues to obtain export licenses for AI chips – a move designed to circumvent Washington’s previous ban on AI chip sales to China.
Despite these challenges, Nvidia’s stock rose 4% at the close of trading on Monday, reflecting investor optimism about the OpenAI partnership.
OpenAI President Greg Brockman highlighted the companies’ long-standing relationship, noting that they had been working closely with Nvidia “since the early days” of OpenAI’s development.
The full details of the agreement are expected to be finalized in the coming weeks.
