Jensen Huang explains why Nvidia's latest partnership with OpenAI is different

In an interrogation with CNBC's Jim Cramer, Nvidia CEO Jensen Huang discussed his company's caller deal with OpenAI, saying it's the archetypal "direct partnership" with the ChatGPT maker.

"This is simply a concern that, for the archetypal time, OpenAI is going to bargain straight from us," Huang said. "Usually…a unreality work supplier buys from us, and they rent from a unreality work provider. And truthful present it's going to beryllium a nonstop partnership."

Nvidia announced successful September it plans to put up to $100 cardinal successful OpenAI to physique retired artificial quality information halfway capacity. The companies said OpenAI is seeking to physique and deploy Nvidia systems that necessitate 10 gigawatts of power. Huang previously told CNBC that 10 gigawatts is adjacent to betwixt 4 cardinal and 5 cardinal GPUS.

OpenAI and Nvidia are 2 of the biggest drivers of the AI boom. Demand for Nvidia's chips started to detonate aft OpenAI archetypal released ChatGPT 3 years agone — and mostly popularized mainstream usage of generative AI. Nvidia's marketplace capitalization has much than tripled implicit the past fewer years. It has go the astir invaluable institution connected the market, arsenic good arsenic the archetypal banal ever to apical $4 trillion.

Huang spoke with Cramer astatine the CNBC Investing Club's Monthly Meeting, which was held Tuesday day astatine the New York Stock Exchange. The interview, parts of which besides aired connected the evening's occurrence of "Mad Money," saw Huang and Cramer besides discuss China, planetary commercialized and cardinal partnerships with AMD and Intel.

Huang told Cramer that Nvidia's OpenAI concern is "incremental" to the enactment the institution has done with different AI names specified arsenic Oracle and CoreWeave.

"We're going to assistance them physique an AI infrastructure that they run themselves … and truly acceptable them up for, you know, 5 years out, erstwhile they're going to run their ain unreality anyhow," Huang said.

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Disclaimer The CNBC Investing Club Charitable Trust owns shares of Nvidia.