TLDR
- Nvidia plans to invest up to $100 billion in OpenAI under a new strategic partnership agreement
- The deal includes deploying at least 10 gigawatts of Nvidia chips for OpenAI’s AI infrastructure
- First deployment phase is targeted to come online in the second half of 2026
- Oracle shares gained nearly 5% following the announcement as a partner in the $500 billion Stargate AI data center project
- This investment comes days after Nvidia committed $5 billion to Intel
Nvidia announced plans to invest up to $100 billion in artificial intelligence startup OpenAI on Monday. The chipmaker revealed a new strategic partnership that will provide OpenAI with massive computing infrastructure.
The companies signed a letter of intent for the landmark deal. The agreement focuses on deploying at least 10 gigawatts of Nvidia chips for OpenAI’s AI infrastructure needs.
Both companies aim to finalize partnership details in the coming weeks. The first deployment phase is scheduled to come online in the second half of 2026.
“Everything starts with compute,” said Sam Altman, CEO of OpenAI, in a company release. He emphasized that compute infrastructure will form the basis for the future economy.
Altman stated the partnership will help create new AI breakthroughs. The infrastructure will also empower people and businesses to scale their AI applications.
Market Response
Stock markets reacted positively to the news. Oracle shares gained nearly 5% following the announcement.
Oracle serves as a partner with OpenAI, SoftBank, and Microsoft on the $500 billion Stargate AI data center project. The company’s stock movement reflects investor confidence in AI infrastructure investments.
Recent Investment Activity
This investment follows Nvidia’s recent commitment to Intel. The chipmaker invested $5 billion in the struggling Intel just days before announcing the OpenAI deal.
Nvidia CEO Jensen Huang described the partnership as “monumental in size” during a CNBC interview. He appeared alongside OpenAI CEO Sam Altman and President Greg Brockman to discuss the deal.
The partnership represents one of the largest AI infrastructure investments announced to date. OpenAI plans to build hundreds of billions of dollars in data centers using Nvidia’s AI chips.
Competition among technology giants has intensified for AI resources. Companies are securing access to energy and chips needed for AI growth.
The agreement highlights the growing demand for AI computing power. Data centers require massive chip deployments to handle AI workloads.
OpenAI continues to expand its infrastructure capabilities. The company needs substantial computing resources to develop and deploy AI models.
Nvidia maintains its position as a leading AI chip provider. The company’s graphics processing units power most AI applications.
The partnership details will be finalized in the coming weeks. Both companies expect the collaboration to drive AI innovation forward.
