OpenAI will secure a fund of $100 billion from Nvidia for the development of huge data centers powered by Nvidiaās AI processors.
Speaking to CNBC, Nvidia CEO Jensen Huang alongside OpenAI CEO Sam Altman stated, both companies aim to establish systems requiring 10 gigawatts of power, equivalent to 4ā5 million GPUs, with this major investment
Huang further called this collaboration āmonumental in size,ā and underscored its role in meeting rapidly increasing demand for AI chips, which skyrocketed following the launch of ChatGPT in 2022.
It is pertinent to mention that the ChatGPT manufacturer has almost 700 million active weekly users, igniting the need for next-generation infrastructure.
The initial phase is set to release by the end of 2026, using Nvidiaās forthcoming Vera Rubin systems. This significant move comes after OpenAIās recent valuation of $500 billion and complements its recent partnerships with Oracle, SoftBank, Microsoft, and the Stargate project.
The investment will launch gradually, with Nvidia, a major player in the AI industry, as OpenAIās preferred chip and networking supplier.
Nvidia stock rose nearly 4%, boosting its market cap to $4.5 trillion.
This agreement highlights Nvidiaās strategic approach, coming after a $5 billion equity in Intel, a $700 million investment in U.K. startup Nscale, and a $900 million talent acquisition at Enfabrica.
