Nvidia to invest billions in OpenAI as AI race heats up

In a tie-up between two of the most well-known names in the global artificial intelligence (AI) field, chipmaker Nvidia will invest up to $100 billion in OpenAI and supply it with data center chips.

According to a source close to OpenAI, the deal, which was announced on Monday, will result in Nvidia beginning to deliver chips as late as late 2026.

According to the person, the startup will pay Nvidia in cash for the chips, and Nvidia will invest in OpenAI for non-controlling shares.

When the two companies reach a definitive agreement to purchase Nvidia chips, Nvidia will begin investing the first $10 billion in OpenAI, which was most recently valued at $500 billion.

Nvidia did not respond to customer requests for more information about the deal right away. The pact is just one of many agreements between major technology companies, including one that involved Microsoft’s years-long investment in OpenAI and a Nvidia and Intel collaboration last week.

The two businesses agreed to form a landmark strategic alliance by deploying at least 10 gigawatts of Nvidia chips for OpenAI’s AI infrastructure.

The first deployment phase is scheduled to launch in the second half of 2026, with the final agreement set to be made in the coming weeks.

According to OpenAI CEO Sam Altman, “everything starts with compute.”

The future’s economy will depend on it, according to the statement from IBM, “and we will use what we’re building with Nvidia to use them to both develop new AI innovations and scale up businesses and individuals with them.”

Nvidia made the investment just days after giving $5 billion to chipmaker Intel, a struggling company.

Microsoft, the organization’s backer, and OpenAI both announced earlier this month that they had reached a non-binding agreement that would allow for OpenAI’s transformation into a for-profit organization.

In October 2024, Nvidia also provided funding for OpenAI through a $6.6 billion funding round. Antitrust scrutiny could be brought on by the world’s most important company, which makes another significant investment in OpenAI.

Comparatively to former US President Joe Biden’s antitrust enforcers, the administration of US President Donald Trump has a much lighter take on competition issues.

A deal between the US Justice Department and the Federal Trade Commission in June 2024 authorized potential antitrust investigations into Microsoft, OpenAI, and Nvidia’s dominant positions in the artificial intelligence sector.