Nvidia investing up to $100B in ChatGPT owner OpenAI | Latest Tech News
Nvidia on Monday announced a $100 billion investment in OpenAI as the 2 companies companion up on a enormous AI infrastructure push.
Jensen Huang, chief government of Nvidia, told CNBC that the deal consists of at least 10 gigawatts value of data facilities — enough to energy between 4 million and 5 million graphics processing models, which is your entire quantity the company will ship this 12 months and “twice as much as last year.”
That’s roughly the quantity of vitality needed for the whole thing of New York City on a scorching summer time day, according to the Mayor’s Office of Climate and Environmental Justice.
The two corporations signed a letter of intent for a landmark strategic partnership to deploy at least 10 gigawatts of Nvidia chips for OpenAI’s AI infrastructure. Nvidia CEO Jensen Huang, above. AFP via Getty Images
The partnership between Nvidia and OpenAI – which was not too long ago valued at $500 billion – is “monumental in size,” Huang added.
Shares in Nvidia jumped practically 4% on Monday.
OpenAI pays Nvidia in money for chips, while Nvidia will invest in the startup for non-controlling shares, a individual acquainted with the matter told GWN.
The investment will probably be made progressively, with the first gigawatt of Nvidia systems to be deployed in the second half of 2026, the businesses said in a press release.
OpenAI and Nvidia have been carefully tied throughout the rise of AI tech adoption.
Demand for Nvidia’s chips soared after OpenAI launched its uber-popular chatbot ChatGPT in 2022, which was developed utilizing the firm’s GPUs.
Nvidia will serve as a “preferred strategic compute and networking partner for its AI factory growth plans,” the businesses said in a assertion.
And OpenAI will require a large quantity of computing energy to generate superior, next-generation AI fashions.
“You should expect a lot from us in the coming months,” OpenAI CEO Sam Altman told CNBC. AP
The company is already in need of an growing quantity of chips to serve its rapidly-expanding consumer base, which has hit 700 million lively weekly customers.
“You should expect a lot from us in the coming months,” OpenAI CEO Sam Altman told CNBC.
“There are three things that OpenAI has to do well: we have to do great AI research, we have to make these products people want to use, and we have to figure out how to do this unprecedented infrastructure challenge.”
Nvidia’s investment comes just days after it pledged $5 billion to struggling chipmaker Intel, following up the White House’s large stake in the company.
The company also backed OpenAI in a $6.6 billion funding spherical in October 2024. It’s attainable that the back-to-back investment may draw antitrust scrutiny.
OpenAI, meanwhile, not too long ago announced that it has signed a deal that will enable it to shift into a for-profit company – despite lawsuits from Elon Musk trying to stop the restructuring.
Nvidia’s sizeable investment in the ChatGPT owner could lead on to antitrust scrutiny. Christopher Sadowski
While Nvidia largely dominates the AI chip market, it’s going through heated competitors from rivals like Advanced Micro Devices, which is based in Santa Clara, Calif., and cloud suppliers that have began developing their own chips.
AI infrastructure is also extremely pricey. During an investor call in August, Huang said it prices between $50 billion to $60 billion to construct just one gigawatt value of data middle capability. About $35 billion of that value goes toward Nvidia chips and systems.
The corporations said Monday that the huge deal would complement its work with Microsoft, Oracle and Softgate on the $500 billion Trump-backed Stargate project, which goals to create the world’s most superior AI infrastructure in the US.
With Post wires
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