Nvidia to invest $100 billion in OpenAI to power next-gen AI infrastructure

Nvidia will invest $100 billion in OpenAI to support the development of new data centers and other infrastructure needed to power the next generation of AI models from the ChatGPT maker. The two companies have signed a letter of intent to deploy at least 10 gigawatts of Nvidia systems for training and running the next generation of OpenAI models.

​The two companies, in a joint statement, said that the first phase of the project will come online in the second half of 2026 using the power of Nvidia's Vera Rubin platform.

​“This investment and infrastructure partnership mark the next leap forward—deploying 10 gigawatts to power the next era of intelligence.” Nvidia CEO Jensen Huang said in a press release by the company.

​Meanwhile, OpenAI CEO Sam Altman, while reacting to the deal, said, “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.” he added.

OpenAI and Nvidia partnership:

​OpenAI says it will work with Nvidia as a ‘preferred strategic compute and networking partner’ for its AI factory growth plans. The ChatGPT maker also added that this partnership ‘complements’ the work already done in the Stargate project.

​Notably, Nvidia had conducted a $6.6 billion funding round in OpenAI in October last year. The latest $100 billion funding round could lead to possible antitrust scrutiny by the US Justice department.

​Meanwhile, OpenAI signed a non-binding agreement with Microsoft last month which allows the AI startup to move forward with its plans to restructure into a for-profit entity.

​The deal ensures that Microsoft would continue to have access to OpenAI's AI models despite the ChatGPT maker diversifying its cloud and infrastructure partners.

​OpenAI also closed a $40 billion funding round in March this year at a valuation of $300 billion, led by the SoftBank Group.