Nvidia and OpenAI have announced a massive partnership, with the US-based chipmaker committing to invest $100 billion in the ChatGPT-maker and supply it with advanced data centre chips. The deal brings together two of its most influential companies in the artificial intelligence (AI) sector.According to a report by news agency Reuters, the collaboration involves two separate but intertwined transactions. Nvidia will make an initial $10 billion investment in OpenAI for non-voting shares once a definitive agreement is reached. OpenAI, in turn, will use the capital to purchase Nvidia’s high-performance chips, an essential component for its AI development. The companies have signed a letter of intent to deploy at least 10 gigawatts of Nvidia systems for OpenAI, with plans to finalise the partnership in the coming weeks.”Everything starts with compute. Compute infrastructure will be the basis for the economy of the future, and we will utilize what we’re building with Nvidia to both create new AI breakthroughs and empower people and businesses with them at scale,” said OpenAI CEO Sam Altman.
What this $100 billion investment means for Nvidia and OpenAI
This alliance will provide Nvidia a significant financial stake in a key customer and solidifies its position as the leading chip supplier for AI development. For OpenAI, the investment guarantees both the funding and access to the advanced computing power necessary to maintain its competitive edge. The first gigawatt of computing power from the deal is expected to be deployed in the second half of 2026 on Nvidia’s upcoming platform, named Vera Rubin. The company will begin delivering hardware to OpenAI as soon as late 2026.While this partnership is a major development, it does not alter OpenAI’s existing plans to develop its own custom AI chips as a potential alternative to Nvidia’s hardware. OpenAI has previously collaborated with Broadcom and Taiwan Semiconductor Manufacturing Co. on a custom chip design, a project that is expected to continue.
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