Nvidia, the chipmaker, is set to invest up to $100 billion in the AI startup OpenAI through a new agreement, as announced by the companies on Monday. This move highlights the growing competition among tech giants to secure the energy and chips essential for AI development.
The firms disclosed a letter of intent for a groundbreaking strategic partnership, planning to deploy at least 10 gigawatts of Nvidia chips to support OpenAI’s AI infrastructure.
They aim to finalize the partnership details in the coming weeks, with the initial deployment phase expected to be operational by the latter half of 2026.
“Everything starts with compute,” stated Sam Altman, CEO of OpenAI, in a press release.
“Compute infrastructure will form the backbone of the future economy. We will harness what we’re building with Nvidia to achieve new AI breakthroughs and empower individuals and businesses on a large scale.”
Oracle, a partner with OpenAI, along with SoftBank and Microsoft on the $500 billion Stargate AI data center project, saw its shares rise nearly 5%.
Nvidia’s investment follows its recent commitment of $5 billion to the struggling chipmaker Intel.
