Nvidia to Invest $100 Billion in OpenAI
Nvidia plans to invest $100 billion in OpenAI to aid in the creation of new data centers and the infrastructure required to support the upcoming generation of AI models from the makers of ChatGPT.
The two firms have agreed on a letter of intent to implement a minimum of 10 gigawatts of Nvidia systems for training and executing the forthcoming generation of OpenAI models.
In a collaborative announcement, the two firms revealed that the initial phase of the project will be operational in the latter half of 2026, leveraging Nvidia's Vera Rubin platform.
“This partnership in investment and infrastructure signifies the next advance—implementing 10 gigawatts to fuel the upcoming age of intelligence,” Nvidia's CEO Jensen Huang says.
In response to the agreement, OpenAI CEO Sam Altman stated, “It all begins with computing.”
“Computing infrastructure will serve as the foundation for the economy ahead, and we will leverage what we’re developing with NVIDIA to generate new AI advancements and enable individuals and companies with them broadly,” he stated.
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OpenAI announces it will collaborate with Nvidia as a ‘preferred strategic compute and networking partner’ for its AI development expansion initiatives. The creator of ChatGPT also stated that this collaboration 'enhances' the efforts already made in the Stargate initiative.
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Significantly, Nvidia carried out a $6.6 billion investment round in OpenAI in October of the previous year. The recent $100 billion funding round may result in potential antitrust examination by the US Justice Department.
In the meantime, OpenAI entered a non-binding deal with Microsoft last month that enables the AI company to proceed with its intentions to transform into a for-profit organization.
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The agreement guarantees that Microsoft will retain access to OpenAI's AI models even as the ChatGPT creator expands its cloud and infrastructure partnerships.
In March this year, OpenAI completed a $40 billion funding round at a valuation of $300 billion, spearheaded by the SoftBank Group.