Nvidia Commits $100 Billion to OpenAI
Nvidia announced Monday that it will invest up to $100 billion in OpenAI to build massive AI data centers. The company plans to deploy 10 gigawatts of Nvidia systems — enough to power millions of homes — to train and run next-generation AI models.
OpenAI will name Nvidia its “preferred strategic compute and networking partner” for AI factory growth. It remains unclear whether the investment will come as chips, cash, or cloud credits.
Reducing Reliance on Microsoft
The deal will help OpenAI reduce its reliance on Microsoft, its largest investor and cloud provider. Earlier this year, Microsoft allowed OpenAI to explore additional AI infrastructure partnerships. Since then, OpenAI has collaborated with Stargate, Oracle, SoftBank, and others on AI data center projects.
Nvidia CEO Jensen Huang called the project “giant” and noted that the 10-gigawatt deployment equals 4–5 million GPUs — roughly twice Nvidia’s total shipments from last year.
Phased Investment and First Gigawatt
Nvidia will release the first $10 billion once the initial gigawatt of infrastructure is online. The company will continue investing as OpenAI scales its data centers. The first phase should come online in the second half of 2026 using Nvidia’s next-generation Vera Rubin systems.
Huang emphasized that the investment is “additive to everything that’s been announced and contracted,” highlighting Nvidia’s key role in OpenAI’s growth.
Market Reaction and AI Demand
Nvidia shares jumped nearly 4% after the announcement, adding roughly $170 billion in market value. The surge reflects strong demand for Nvidia GPUs, which power OpenAI’s AI research and products, including ChatGPT, which serves 700 million weekly active users.
Bryn Talkington of Requisite Capital Management called the partnership “virtuous” for Nvidia, pointing to the mutual benefit of supplying chips and infrastructure to OpenAI.
Strategic Partnerships Continue
The investment complements OpenAI’s existing collaborations with Microsoft, Oracle, SoftBank, and the Stargate project. CEO Sam Altman stressed OpenAI’s top priorities: advancing AI research, creating products people want, and tackling the unprecedented infrastructure challenge.
Meanwhile, Nvidia continues investing in the AI ecosystem. The company recently acquired a $5 billion stake in Intel, invested $700 million in U.K. data center startup Nscale, and hired key AI talent.
