Nvidia Commits Up to $100 Billion to OpenAI in Massive AI Chip Deal
Nvidia plans to invest up to $100 billion in OpenAI while supplying the startup with essential data center chips. The landmark partnership aims to deploy at least 10 gigawatts of computing power starting in late 2026.
Chipmaker Nvidia announces a massive financial commitment of up to $100 billion to OpenAI, solidifying a major alliance in the global artificial intelligence race. The deal involves two interconnected transactions where OpenAI pays cash for Nvidia data center chips and Nvidia receives non-controlling shares in the startup. The first $10 billion of this investment triggers as soon as both companies finalize a definitive agreement for the hardware purchase.
The two tech leaders sign a letter of intent to deploy at least 10 gigawatts of Nvidia chips specifically for OpenAI's AI infrastructure. They plan to finalize the specific details of this strategic partnership in the coming weeks, with the first phase of the chip deployment coming online in the second half of 2026. OpenAI CEO Sam Altman emphasizes that compute infrastructure serves as the foundation for the future economy.
This landmark agreement fits into a broader pattern of major partnerships across the technology sector, including Microsoft's ongoing financial support of OpenAI and Nvidia's recent $5 billion commitment to Intel. The market responds positively to the news, pushing Nvidia shares up 4.4% and boosting Oracle stock by nearly 5% amid its own involvement in the $500 billion Stargate AI data center project.