Nvidia to invest $100 billion in OpenAI for AI data centers
Nvidia has announced plans to invest up to 100 billion dollars in OpenAI in a move that will accelerate the build-out of some of the largest computing infrastructure projects in history. The partnership focuses on deploying at least 10 gigawatts of Nvidia systems that OpenAI will use to train and run its next generation of artificial intelligence models. The scale of the project underlines the growing demand for advanced chips and computing power as companies race to build AI systems capable of far-reaching capabilities.
The investment will be structured in phases tied to the deployment of infrastructure. The first 10 billion dollars from Nvidia will be committed when the first gigawatt of systems is operational, which is targeted for the second half of 2026. Each gigawatt of capacity is expected to cost between 50 and 60 billion dollars, with about 35 billion allocated to Nvidia’s hardware. According to Nvidia’s chief executive, the 10 gigawatts of capacity equal between four and five million GPUs, roughly the number the company expects to ship this year and twice the volume of last year.
Nvidia will become OpenAI’s preferred supplier for compute and networking systems under the agreement. This will make Nvidia a central partner in OpenAI’s push to expand its infrastructure and pursue artificial general intelligence. OpenAI will continue to work alongside Microsoft, Oracle, SoftBank and partners involved in the Stargate megaproject, which aims to build massive AI data centers worldwide. OpenAI now reports more than 700 million active weekly users, putting pressure on its systems to scale as demand from consumers, businesses and developers grows rapidly.
The partnership is closely watched because of Nvidia’s market position. The company already dominates the AI chip market, and this agreement could strengthen its lead at a time when rivals such as AMD and large cloud providers are developing AI chips of their own. Analysts have noted concerns of circular business flows since Nvidia is investing large sums into OpenAI, which will in turn spend that money to buy Nvidia chips. Despite these concerns, investors responded positively to the news. Nvidia shares rose more than 4 percent after the announcement, adding around 170 billion dollars in market value and bringing its total market capitalization close to 4.5 trillion dollars.
The OpenAI deal is the latest in a string of major commitments from Nvidia. The company recently took a multi-billion dollar stake in Intel, made investments in data center startup Nscale, and hired talent from AI startup Enfabrica while licensing its technology. Together, these moves show Nvidia’s determination to extend its leadership as demand for AI accelerates worldwide. The $100 billion plan with OpenAI, however, stands out as one of the most ambitious efforts yet, highlighting how central compute infrastructure has become in the race to develop and deploy next-generation AI.
