Nvidia to invest billions in OpenAI as AI race heats up

The institution volition besides supply chips for OpenAI’s information centres.

Chipmaker Nvidia volition put up to $100bn successful OpenAI and supply it with information halfway chips, a tie-up betwixt 2 of the highest-profile leaders successful the planetary artificial quality (AI) race.

The deal, announced connected Monday, volition spot Nvidia commencement delivering chips arsenic soon arsenic precocious 2026 and volition impact 2 abstracted but intertwined transactions, according to a idiosyncratic adjacent to OpenAI.

Recommended Stories

• list 1 of 4Trump-Xi telephone thaws US-China relations, but nary wide TikTok woody yet
• list 2 of 4Trump imposes $100,000 interest per twelvemonth for H-1B visas
• list 3 of 4Americans to predominate committee of TikTok’s US operations: White House
• list 4 of 4Trump says Lachlan Murdoch portion of projected TikTok deal

The startup volition wage Nvidia successful currency for chips, and Nvidia volition put successful OpenAI for non-controlling shares, the idiosyncratic said.

The archetypal $10bn of Nvidia’s concern successful OpenAI, which was astir precocious valued astatine $500bn, volition statesman erstwhile the 2 companies scope a definitive statement for OpenAI to acquisition Nvidia chips.

Nvidia did not respond to contiguous requests for clarification astir the deal. The pact is among a spate of agreements betwixt large exertion players that includes years of concern successful OpenAI from Microsoft and a woody past week betwixt Nvidia and Intel to collaborate connected AI chips.

The 2 companies signed a missive of intent for a landmark strategical concern to deploy astatine slightest 10 gigawatts of Nvidia chips for OpenAI’s AI infrastructure.

They purpose to finalise concern details successful the coming weeks, with the archetypal deployment signifier targeted to travel online successful the 2nd fractional of 2026.

“Everything starts with compute,” OpenAI CEO Sam Altman said successful a statement.

“Compute infrastructure volition beryllium the ground for the system of the future, and we volition utilize what we’re gathering with Nvidia to some make caller AI breakthroughs and empower radical and businesses with them astatine scale.”

Nvidia’s concern comes days aft it committed $5bn to struggling chipmaker Intel.

OpenAI and its backer, Microsoft, besides announced earlier this period that they person signed a nonbinding woody for caller narration presumption that would let for OpenAI’s restructuring into a for-profit company.

Nvidia besides backed OpenAI successful a $6.6bn backing circular successful October 2024. However, the world’s astir invaluable steadfast making different sizeable concern successful OpenAI could pb to antitrust scrutiny.

The medication of US President Donald Trump has taken a overmuch lighter interaction connected contention issues compared with erstwhile President Joe Biden’s antitrust enforcers.

In June 2024, the US Justice Department and the Federal Trade Commission reached a woody that cleared the mode for imaginable antitrust investigations into the ascendant roles that Microsoft, OpenAI and Nvidia play successful the artificial quality industry.

Nvidia’s banal is surging connected the caller investment. As of 2pm successful New York (18:00 GMT), it is up by much than 3.9 percent.