Newsletter
Nvidia is set to invest $100 billion in OpenAI to support new data centers and other AI infrastructure.
What’s happening: the companies revealed they have signed an initial agreement for a long-term partnership. The deal highlights the explosive growth in demand for AI tools like ChatGPT and the immense computing power required to keep them running.
The investment will help OpenAI build giant data centers with at least 10 gigawatts of power, packed with Nvidia’s most advanced chips. These centers will train and operate AI systems, with the first phase expected to go live in the second half of 2026.
This partnership also highlights how closely OpenAI and Nvidia are linked in driving the AI boom. Demand for Nvidia’s chips soared when OpenAI launched ChatGPT in 2022, and OpenAI continues to depend on them to build and deliver its AI tools to users.
Why it matters: Nvidia is using its huge financial strength to stay at the center of the AI revolution. The new deal with OpenAI, the maker of ChatGPT, shows how close the two companies remain. It also means OpenAI will keep relying on Nvidia’s powerful chips as it builds bigger AI systems, even though it may also work with other suppliers.
The impact: Nvidia’s share price has jumped 37% this year, making it the most valuable company in the world. In the last six months alone, the stock has climbed more than 51%. Over five years, Nvidia has rewarded investors with a massive 1,300% return.
