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Nvidia Plans to Invest Up to $100 Billion in OpenAI for AI Data Centers

Prime Highlight

  • Nvidia plans to invest up to $100 billion in OpenAI to build massive data centers capable of training and running advanced AI models.
  • The partnership will help OpenAI expand its research, products, and infrastructure for its 700 million weekly active users.

Key Facts

  • The data centers will require 10 gigawatts of power, supporting up to 5 million GPUs—double Nvidia’s total shipments from last year.
  • Nvidia shares jumped nearly 4%, raising its market value to about $170 billion after the announcement.

Background

On Monday, Nvidia revealed it plans to invest up to 100 billion dollars in OpenAI to construct gigantic data centers to train and execute sophisticated AI models. The companies agreed on a letter of intent to install systems that will need 10 gigawatts of power, enough to support millions of graphics processing units (GPUs) and power millions of homes.

The first phase of Nvidia’s planned investment, totaling $10 billion, will be deployed once the first gigawatt of capacity is completed. Investments will be rolled out progressively as the AI infrastructure is built. Nvidia will serve as OpenAI’s preferred supplier for chips and networking equipment.

Nvidia CEO Jensen Huang described the project as “giant,” noting that the 10 gigawatts of capacity equals 4–5 million GPUs, double Nvidia’s total shipments from last year. OpenAI CEO Sam Altman said the investment will help the company expand its research, products, and infrastructure to serve its 700 million weekly active users.

The deal reduces OpenAI’s reliance on Microsoft, its largest investor, while complementing existing collaborations with Microsoft, Oracle, SoftBank, and the Stargate project. OpenAI and Nvidia emphasized that the partnership is “additive” to all previous agreements.

The announcement also reflects Nvidia’s growing role in AI hardware investment. Recently, the chipmaker planned and executed investments, including a $5 billion stake in Intel, $700 million in UK-based Nscale, and the hiring of key staff from AI startup Enfabrica.

After the news, Nvidia shares increased by almost 4 percent, and the company has elevated its market value to approximately $170 billion. Analysts say the partnership highlights the strong link between OpenAI’s AI development and Nvidia’s hardware, underlining the massive demand for AI computing power.

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