OpenAI and NVIDIA Strike $100B Partnership to Power the Future of AI

In a move that could reshape the AI landscape, OpenAI and NVIDIA have signed a letter of intent for a partnership valued at up to $100 billion. The agreement outlines plans to deploy at least 10 gigawatts of NVIDIA’s computing systems to support OpenAI’s next-generation infrastructure, the backbone for training and running its future AI models, including those aimed at superintelligence.

What’s in the Deal?

The deal, announced jointly by both companies, is still at the letter of intent stage, meaning it’s not yet a binding final contract. However, the headline terms are significant:

• NVIDIA intends to invest up to $100 billion in OpenAI as systems are rolled out.
• OpenAI will use that capital to purchase NVIDIA’s processors, ensuring access to the world’s most in-demand AI chips.
• The first gigawatt of computing power is expected to come online in the second half of 2026, powered by NVIDIA’s upcoming Vera Rubin platform.
• Ultimately, the partnership aims to scale up to 10 GW, a capacity that would consume as much power as more than 8 million U.S. households.

Why It Matters?

This partnership highlights the increasingly close ties between the largest players in AI:

• For OpenAI, the deal provides both funding and guaranteed access to critical NVIDIA hardware, essential for scaling its models and research.
• For NVIDIA, it strengthens its role not just as a supplier but also as a financial stakeholder in one of its biggest customers.

Analysts say the structure of the agreement, NVIDIA investing in OpenAI, with OpenAI then purchasing NVIDIA’s chips, may raise questions about circular economics. Still, the scale of investment and compute planned is unprecedented.

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Market and Industry Impact

Following the announcement, NVIDIA shares jumped to a record high, climbing more than 4%. Oracle, which is working with OpenAI, Microsoft, and SoftBank on a separate $500 billion global AI data center project called Stargate, also gained around 6%.

Competitors, however, may see the move as reinforcing NVIDIA’s dominance in chips and OpenAI’s lead in software, potentially drawing antitrust scrutiny. The U.S. Department of Justice and FTC have already flagged AI partnerships for closer review.

OpenAI’s Other Chip Efforts

It’s worth noting that OpenAI is still pursuing its own custom chip initiatives, working with partners like Broadcom and TSMC. Those plans remain unchanged by this NVIDIA deal, according to people familiar with the company’s strategy. Still, Broadcom’s stock dipped slightly after the news broke.

Looking Ahead

While the partnership is still being finalized, its ambition is clear: to create the infrastructure capable of supporting AI at superintelligence scale. OpenAI CEO Sam Altman summed it up: “Everything starts with compute. Compute infrastructure will be the basis for the economy of the future.”

If the deal goes through as planned, the first phase of this massive infrastructure rollout will begin in 2026, setting the stage for a new era in AI development.

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