By: The Trek News Desk
Ina major move that could reshape the artificial intelligence (AI) landscape, global chipmaking giant Nvidia is set to invest up to $100 billion in OpenAI. The deal also includes supplying high-performance chips for OpenAI’s expanding data centres, signalling a deepening strategic partnership between two of the most influential players in the AI space.
According to sources familiar with the matter, the agreement announced on Monday will see chip deliveries beginning by the end of 2026. The collaboration consists of two parallel but interconnected arrangements: OpenAI will purchase Nvidia chips with cash, while Nvidia will invest in OpenAI in exchange for a non-controlling equity stake.
The first tranche of this massive investment, estimated at $10 billion, will be unlocked once both companies sign a definitive agreement regarding chip procurement. Nvidia, however, has not publicly commented on the finer details of the deal.
This partnership is part of a growing wave of high-value collaborations within the AI sector. It follows long-standing investments in OpenAI by Microsoft and a recent agreement between Nvidia and Intel to work together on AI-focused chip development. Both Nvidia and OpenAI have signed a letter of intent for a large-scale deployment of Nvidia chips, targeting at least 10 gigawatts of AI computing infrastructure.
Executives from both firms have confirmed that finer terms of the deal will be finalized in the coming weeks, with the first phase of deployment expected to go live in the latter half of 2026.
“Everything begins with compute,” said OpenAI CEO Sam Altman in a statement. “The future of the global economy will be built on computing infrastructure. Through our partnership with Nvidia, we aim to develop breakthrough AI capabilities and scale them to empower individuals and businesses alike.”
Nvidia’s announcement comes just a week after it committed $5 billion to support struggling chipmaker Intel. Meanwhile, OpenAI and its key backer, Microsoft, have also signed a non-binding agreement this month outlining new terms for a potential corporate restructuring that could turn OpenAI into a fully for-profit entity.
Back in October 2024, Nvidia had participated in OpenAI’s $6.6 billion funding round.
Following the investment announcement, Nvidia’s stock witnessed a notable surge, rising more than 3.9% as of 2 PM (New York time).
This landmark deal is not just a strategic boost for Nvidia, but also intensifies the competitive dynamics in the rapidly evolving AI sector, where the battle for compute power is quickly becoming central to technological dominance.
Source: Reuters
