Nvidia, the chipmaker, announced that it plans to invest up to $100 billion into OpenAI, the company behind ChatGPT, marking a significant partnership in the competitive landscape of artificial intelligence.
According to a source close to OpenAI, Nvidia is expected to start delivering chips in the latter half of 2026, which will entail two interconnected deals.
OpenAI will reimburse Nvidia in cash for the chips, while Nvidia will invest in OpenAI through non-controlling stock options.
The companies have formalized an intent to form a strategic partnership aiming to deploy a minimum of 10 gigawatts of Nvidia chips to support OpenAI’s AI infrastructure. Jensen Huang, Nvidia’s CEO, indicated that they are set to finalize this partnership soon.
This initial $10 billion investment by Nvidia comes after OpenAI was recently valued at $500 billion, contingent on them reaching a solid agreement for purchasing Nvidia chips.
Nvidia hasn’t provided further details in response to requests about the investment specifics.
This partnership unfolds amidst several key agreements within the tech sector, including a long-standing collaboration between OpenAI and Microsoft, as well as recent discussions involving AI chips between Nvidia and Intel.
As they finalize the terms, the rollout of this partnership is targeted for the second half of 2026.
“It all starts with calculations,” stated Sam Altman, the CEO of OpenAI.
He elaborated that computing infrastructure will play a crucial role in shaping the future economy, using Nvidia’s advancements to drive AI innovations and improve operations for people and businesses alike.
Following the announcement, Nvidia’s stock saw a 3% increase, while Oracle’s shares—tied to a partnership with OpenAI, SoftBank, and Microsoft for a $500 billion AI data center project—rose nearly 5%.
Nvidia’s recent investment announcement came just days after Intel disclosed a $5 billion commitment to the industry.
Earlier this month, OpenAI and Microsoft revealed a non-binding agreement that allows OpenAI to transition into a for-profit company.
Additionally, Nvidia had previously supported OpenAI with a substantial $6.6 billion in funding in October 2024. However, concerns are growing about potential antitrust implications with such large investments in OpenAI from major tech firms.
Interestingly, the recent administration has been less stringent regarding competition rules compared to the previous administration’s approach to antitrust issues.
In June 2024, the Department of Justice and the Federal Trade Commission cleared up potential antitrust concerns surrounding the major influence of Microsoft, OpenAI, and Nvidia in the artificial intelligence sector.
