Nvidia to Invest $100 Billion in OpenAI, Supply Data Center Chips in Landmark AI Deal
Historic Partnership
Nvidia announced on Monday that it will invest up to $100 billion in OpenAI while also supplying the company with data center chips. The agreement brings together two of the most prominent players in the global race to advance artificial intelligence.
This partnership highlights how leading tech companies are increasingly interlinked in their efforts to develop cutting-edge AI systems. For Nvidia, the deal secures a major financial stake in the industry’s most visible AI firm, while for OpenAI, it ensures both funding and access to the high-powered chips it needs to stay ahead of rivals.
Structure of the Deal
According to a source familiar with the matter, the agreement will involve two connected transactions. OpenAI will purchase Nvidia’s systems with cash, while Nvidia will take non-controlling shares in the AI startup.
The initial $10 billion investment will begin once the companies finalize a contract for OpenAI to buy Nvidia hardware. OpenAI, which was last valued at $500 billion, plans to deploy the first gigawatt of computing power in late 2026 using Nvidia’s Vera Rubin platform.
“Everything starts with compute,” said OpenAI CEO Sam Altman. “This infrastructure will shape the future economy, and with Nvidia we will create breakthroughs that benefit people and businesses at scale.”
Massive Expansion Plans
The two firms signed a letter of intent to install at least 10 gigawatts of Nvidia-powered systems for OpenAI. They expect to finalize the full details of the partnership in the coming weeks.
Nvidia’s shares rose 4.4 percent to a record high following the announcement, while Oracle stock gained about 5 percent. Oracle, which is collaborating with OpenAI, SoftBank, and Microsoft on the $500 billion Stargate project, also stands to benefit from the expansion of AI data centers worldwide.
Industry analysts noted that the deal strengthens Nvidia’s dominance in AI chips. “Demand for Nvidia GPUs is built into the future of frontier AI models,” said Jacob Bourne of eMarketer. “This should ease concerns about lost sales in China and shows rivals are far from challenging Nvidia’s lead.”
Industry and Regulatory Context
This investment adds to a growing list of high-profile partnerships in the sector. Microsoft has poured billions into OpenAI since 2019, while Nvidia recently struck a collaboration with Intel and invested $5 billion in its AI efforts. The chipmaker also supported OpenAI in a $6.6 billion funding round in October 2024.
However, the size of Nvidia’s new commitment could draw scrutiny from U.S. regulators. Last year, the Justice Department and Federal Trade Commission agreed to monitor potential antitrust concerns involving Microsoft, OpenAI, and Nvidia. For now, though, the Trump administration has taken a lighter stance on competition issues compared with the previous administration.
Custom Chips and Competition
OpenAI continues to pursue its own chip strategy as well. Earlier this year, reports revealed that it was developing a custom processor with Broadcom and Taiwan Semiconductor Manufacturing Co. to strengthen its bargaining position with chip suppliers.
Despite Nvidia’s investment, OpenAI plans to continue these efforts along with its existing partnership with Microsoft. Competitors such as Google, Amazon, and Microsoft are also investing heavily in designing in-house AI accelerators to reduce reliance on Nvidia’s chips, which remain in limited supply.
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