‘Staggering commitment’: Nvidia to invest up to $100bn in OpenAI
A massive expansion in OpenAI’s compute capacity will soon be underway after the firm secured a $100bn (£74bn) investment from the world’s best-known chipmaker, Nvidia.
The commitment was made as part of a major strategic partnership between the two tech giants, which will see Nvivida deploy at least 10 gigawatts in data centre capacity for OpenAI’s next-generation AI infrastructure to train and run its next generation of models.
OpenAI said it would buy millions of Nvidia’s AI processors as part of the deal, while Nvidia would seek to build an equity stake in OpenAI over time as its systems are deployed.
The first phase is targeted to come online in the second half of 2026 using the Nvidia’s new Vera Rubin platform. The deal underscores the vast levels of compute ChatGPT maker OpenAI and its rivals expect to consume as they wrestle to become the dominant player in the fast-growing AI industry.
“Everything starts with compute,” said OpenAI co-founder Sam Altman.
“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.”
Nvidia shares rose as much as 4 per cent following the announcement.
‘Bombshell on the AI landscape’
Matt Britzman, senior equity analyst at Hargreaves Lansdown, described the move as a “staggering commitment.”
“Nvidia and OpenAI just dropped a bombshell on the AI landscape. For Nvidia, the prize is huge – every gigawatt of AI data centre capacity is worth about $50 billion in revenue, meaning this project could be worth as much as $500 billion,” Britzman said.
“This move cements Nvidia’s position as the undisputed king of AI at a time when custom chips from hyperscalers and startups had started to nibble at its dominance.
“The market is clearly big enough for multiple players, but this deal underscores that, when it comes to scale and ecosystem depth, Nvidia is still setting the pace – and raising the stakes for everyone else.”