Nvidia to Invest Up to $100 Billion in OpenAI, Strengthening AI Partnership

Nvidia announced on Monday that it will invest up to $100 billion in OpenAI while also supplying the company with advanced data center chips. The partnership marks a major alliance between two of the most influential players in the global artificial intelligence industry.

Strengthening AI Ties

This deal highlights the growing overlap among tech giants racing to dominate artificial intelligence. Nvidia, the leading chipmaker, gains a financial stake in OpenAI, while OpenAI secures the cash and hardware it needs to maintain its edge in the competitive AI landscape.

Rivals may worry that the partnership could reduce competition. The agreement involves two parts: Nvidia will invest in OpenAI for non-voting shares, and OpenAI will then use that capital to purchase Nvidia’s chips.

Massive Compute Power Deployment

OpenAI CEO Sam Altman emphasized the importance of computing power, calling it the foundation of the future economy. The companies signed a letter of intent to deploy at least 10 gigawatts of Nvidia systems for OpenAI. That amount of power equals the electricity needs of more than 8 million U.S. homes.

The deal is expected to close in the coming weeks, with Nvidia initially investing $10 billion once a definitive agreement is signed. Deliveries of Nvidia’s new Vera Rubin platform are scheduled to begin in late 2026, starting with one gigawatt of computing power.

Market and Industry Impact

News of the deal pushed Nvidia shares up 4.4% to a record intraday high, while Oracle gained 6%. Oracle is already working with OpenAI, Microsoft, and SoftBank on the $500 billion Stargate project to build global AI data centers.

Analysts welcomed the agreement but raised concerns over its “circular” nature, since OpenAI’s chip purchases could recycle Nvidia’s investment back to the company. Still, the deal secures Nvidia’s leadership in AI hardware.

Competition and Antitrust Concerns

OpenAI has also been developing its own AI chips with Broadcom and TSMC as part of its long-term strategy. The Nvidia-OpenAI deal does not alter those plans or its partnership with Microsoft.

The scale of the investment could attract regulatory scrutiny. In 2024, the U.S. Department of Justice and FTC agreed to monitor major players like Microsoft, OpenAI, and Nvidia for potential antitrust issues. However, the Trump administration has so far favored a pro-business stance on AI regulation.

Experts say the partnership could reshape incentives in the AI sector, potentially locking in Nvidia’s dominance in chips and OpenAI’s lead in software. Competitors like AMD and other AI model developers may find it harder to scale.