Nvidia invests $100 billion in OpenAI

Technology giant Nvidia will invest up to $100 billion in OpenAI and supply the latter with chips for data centers.

The companies emphasized that they will cooperate in the global race in artificial intelligence.

The move underscores the increasingly intertwined interests of tech giants developing advanced AI systems. The deal gives chipmaker Nvidia a financial stake in the world's most popular AI company, which is already one of its most important customers.

At the same time, this investment provides OpenAI with the funds and access it needs to buy advanced chips that are essential to maintaining a lead in an increasingly competitive market. Competitors of both companies may express concerns that the partnership could harm competition.

The deal will involve two separate but related transactions, a source close to OpenAI said. Nvidia will begin investing in OpenAI through non-voting shares once the deal is complete, and OpenAI will then use the money to buy Nvidia chips, the source said.

“It all starts with computing power,” OpenAI CEO Sam Altman said in a statement. “Computer infrastructure will be the foundation of the economy of the future, and we will use what we are building with Nvidia to achieve new advances in AI and bring these benefits to people and businesses at scale.”

The two companies have signed a letter of intent to deploy at least 10 gigawatts of Nvidia systems to OpenAI and said they aim to finalize details of the partnership in the coming weeks. The power required by these chips is equivalent to the energy needs of more than 8 million American homes.

Nvidia shares rose as much as 4.4% after the announcement, hitting a new intraday record, while data center builder Oracle (ORCL.N) rose about 6%. Oracle is partnering with OpenAI, SoftBank and Microsoft on a $500 billion project called Stargate , which aims to build giant AI centers around the world.

Under the new deal, once a final agreement is reached to acquire Nvidia Systems from OpenAI, Nvidia will invest an initial $10 billion, the person familiar with the matter said. OpenAI's last estimated valuation was $500 billion.

Nvidia is expected to start shipping the hardware from the end of 2026, with the first gigawatt of computing power to be deployed in the second half of that year, on its new platform called Vera Rubin.

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