Nvidia announced up to $100 billion investment in OpenAI data centers
Nvidia said Monday it will invest up to $100 billion in OpenAI, building infrastructure for next-generation artificial intelligence. The strategic partnership aims to deploy massive data center capacity, uniting generative AI star OpenAI with the leading maker of chips powering the technology. "Compute infrastructure will be the basis for the economy of the future," OpenAI chief executive Sam Altman said in a joint release. "We will utilize what we're building with NVIDIA to both create new AI breakthroughs and empower people and businesses with them at scale."
The partnership will enable San Francisco-based OpenAI to build and deploy AI data centers with Nvidia systems, representing millions of sophisticated graphics processing units (GPUs), according to the companies. As part of their alliance, OpenAI and Nvidia say they collaborate to improve how their software and hardware work together. The first Nvidia systems are expected to be operating in the second half of next year. No financial details were provided beyond the possible magnitude of Nvidia's investment in OpenAI.
The investment reflects broader competition in the artificial intelligence sector. Tech industry rivals Amazon, Google, Meta, Microsoft and Elon Musk's xAI have been pouring billions of dollars into artificial intelligence since the blockbuster launch of the first version of ChatGPT in late 2022. Chinese startup DeepSeek shook up the AI sector early this year with a model that delivers high performance using less costly chips. Nvidia has become a coveted source of high-performance GPUs tailored for generative AI.
Nvidia's commitment to the sector extends beyond OpenAI. Silicon Valley-based Nvidia last week announced it would invest $5 billion in struggling chip rival Intel. The investment represents a significant commitment to Intel's turnaround efforts, as Nvidia joined Japanese investment giant SoftBank and the US government in backing the once-dominant chipmaker, which has fallen behind in recent years after missing key technology shifts. Nvidia's GPUs, originally designed for gaming systems, have become the essential building blocks of artificial intelligence applications, with tech giants scrambling to secure them for their data centers and AI projects.
OpenAI released a keenly awaited new generation of its hallmark ChatGPT last month, touting significant advancements in artificial intelligence capabilities as a global race over the technology accelerates. ChatGPT-5 was made available free to the more than 700 million who use the AI tool weekly, according to OpenAI.