SANTA CLARA, California: Nvidia said it will invest up to US$100 billion in OpenAI and supply the startup with advanced chips, cementing a landmark alliance between two of the most influential players in artificial intelligence.
The deal, which involves Nvidia taking non-voting shares in OpenAI and OpenAI using the cash to purchase Nvidia hardware, highlights how closely intertwined the futures of AI chipmakers and model developers have become. Nvidia shares surged to a record high on the news, while analysts warned the partnership could heighten concerns about competition.
“Everything starts with compute,” OpenAI CEO Sam Altman said in a statement. “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.”
The companies signed a letter of intent to deploy at least 10 gigawatts of Nvidia systems — enough power for more than 8 million U.S. households — with the first deliveries of Nvidia’s upcoming Vera Rubin platform expected in late 2026. Once OpenAI signs definitive purchase agreements for its systems, Nvidia will begin with a $10 billion investment.
People familiar with the matter said OpenAI, most recently valued at $500 billion, will continue with parallel efforts to develop custom AI chips with Broadcom and Taiwan Semiconductor. Microsoft, OpenAI’s largest backer, is also part of the $500 billion Stargate project with Oracle and SoftBank to build massive AI data centers worldwide.
The agreement extends Nvidia’s push to secure long-term demand for its processors while giving OpenAI the resources to scale amid intensifying competition. Still, some analysts flagged “circular” concerns, as Nvidia’s investment could effectively flow back to it via chip purchases.
Nvidia has been expanding its network of alliances, recently announcing collaborations with Intel and committing $5 billion to support its rival. The chipmaker also participated in a $6.6 billion OpenAI funding round in 2024.
The scale of Nvidia’s latest commitment may attract scrutiny from U.S. regulators. While the Justice Department and Federal Trade Commission agreed last year to oversee potential probes into Microsoft, OpenAI, and Nvidia, President Donald Trump’s administration has taken a lighter stance on antitrust than his predecessor.
“The deal could change the economic incentives of Nvidia and OpenAI as it could potentially lock in Nvidia’s chip monopoly with OpenAI’s software lead,” said Andre Barlow, an antitrust lawyer. “It could potentially make it more difficult for Nvidia competitors like AMD in chips or OpenAI’s competitors in models to scale.”
Pictured: NVIDIA founder and CEO Jensen Huang | Credit: Nvidia