Nvidia is set to invest up to $100 billion in OpenAI, marking one of the largest strategic partnerships in artificial intelligence to date. The deal combines chip supply and equity investment, further cementing both companies as dominant players in the global AI race.
What Does the Nvidia–OpenAI Deal Include?
According to details revealed on Monday, the agreement involves two intertwined transactions:
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Chip Supply: OpenAI will purchase Nvidia’s advanced data center GPUs, with deliveries expected to begin in late 2026.
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Equity Investment: Nvidia will acquire non-controlling shares in OpenAI, with the first $10 billion investment tied to a definitive chip-purchase agreement.
This move comes as OpenAI’s valuation hovers around $500 billion, making it one of the most valuable AI companies globally.
A Strategic Shift in AI Compute Power
The companies have signed a letter of intent to deploy at least 10 gigawatts of Nvidia chips for OpenAI’s expanding AI infrastructure. The first deployment phase is targeted for the second half of 2026, with further details expected in the coming weeks.
OpenAI CEO Sam Altman emphasized the role of compute in shaping future economies:
“Compute infrastructure will be the basis for the economy of the future, and we will utilize what we’re building with Nvidia to create new AI breakthroughs and empower people and businesses at scale.”
Market Reactions and Industry Impact
Following the announcement:
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Nvidia (NVDA) shares rose 4.4%.
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Oracle (ORCL) stock gained nearly 5%, boosted by its role in the $500 billion Stargate AI data center project, which also involves Microsoft and SoftBank.
This deal adds to Nvidia’s growing list of partnerships. Just days earlier, the chip giant committed $5 billion to Intel, signaling its intent to control critical parts of the AI supply chain.
Regulatory and Competitive Landscape
The scale of Nvidia’s planned investment is likely to draw antitrust scrutiny, especially given the company’s previous $6.6 billion funding round for OpenAI in October 2024.
In June 2024, U.S. regulators at the Justice Department and Federal Trade Commission cleared the way for potential investigations into the outsized influence of Microsoft, OpenAI, and Nvidia in the AI industry.
However, under the Trump administration, antitrust enforcement has taken a lighter approach compared to the Biden era, potentially giving this partnership more breathing room.
Why This Matters
This $100 billion collaboration underscores the growing demand for compute power as the foundation of artificial intelligence. For Nvidia, it solidifies its dominance in GPU manufacturing. For OpenAI, it provides the infrastructure backbone needed to push AI research and commercialization to the next frontier.
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