Nvidia to invest up to $100B in ChatGPT creator OpenAI
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ChatGPT on App Store displayed on a phone screen. Photo by Jakub Porzycki/NurPhoto via Getty Images
Nvidia is investing up to $100 billion in OpenAI, creating a powerful alliance in the ballooning AI economy.
Why it matters: Nvidia is the world's most valuable company, with a dominant position in the chips powering the AI revolution, and OpenAI is the innovating force behind market leader ChatGPT.
Driving the news: The deal calls for the $4 trillion chip giant to deliver the funds in stages, enabling OpenAI to "build and deploy at least 10 gigawatts of AI data centers with Nvidia systems."
- Nvidia called it a "strategic partnership" and said it would allow OpenAI to "train and run its next generation of models on the path to deploying superintelligence."
- The company said the first phase of systems will come online in the second half of 2026 using Nvidia's next-generation Vera Rubin chips.
What they're saying: "Nvidia and OpenAI have pushed each other for a decade, from the first DGX supercomputer to the breakthrough of ChatGPT," Nvidia CEO Jensen Huang said in a statement. "This investment and infrastructure partnership mark the next leap forward — deploying 10 gigawatts to power the next era of intelligence."
- "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."
Zoom in: Nvidia said the companies plan to work together to "co-optimize their roadmaps."
- For OpenAI, the move marks another move to expand its roster of allies beyond its relationship with early backer Microsoft.
- Nvidia described the deal as a complementary to OpenAI's ties with Microsoft and other collaborators, including AI data software giant Oracle, SoftBank and Stargate.
Follow the money: The deal effectively provides OpenAI with funding that it can use to purchase Nvidia products.
- Nvidia investors applauded the announcement, driving up shares by 4% at 1 p.m. ET Monday.
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