US EditionNvidia’s $100 Billion OpenAI Deal Could Reshape the AI Chip Race
Nvidia will invest up to $100 billion and lease GPUs to OpenAI, aiming to cut hardware costs by 10-15% and support rapid AI data center expansion.
- On September 22, Nvidia Corp., headquartered in Santa Clara, California, said it will invest as much as $100 billion in OpenAI Inc. as part of a strategic partnership announced that day.
- Facing funding constraints, OpenAI Inc. is in advanced talks to lease high-performance GPUs from Nvidia, aiming to cut hardware costs by 10 to 15% and deploy up to 10 GW of Nvidia-powered infrastructure.
- OpenAI CFO Sarah Friar told CNBC that `What I think we should all be focused on today is the fact that there's not enough compute`, while Nvidia is investing $10 billion for a roughly 2% equity stake at a $500 billion valuation.
- Analysts cautioned that the deal fuels 'circular' financing concerns and investors flagged risks of an AI bubble reminiscent of the dot-com bust 25 years ago.
- The deal positions Nvidia as supporting data centers opening in the coming years, with the first one expected in the second half of 2026.
20 Articles
20 Articles
Nvidia’s $100 Billion OpenAI Deal Could Reshape the AI Chip Race
Key Points Nvidia’s $100B Investment in OpenAI: Nvidia is investing heavily in OpenAI, primarily to support data centers and secure demand for its chips, reflecting a strategy of spreading bets across the tech industry. Strategic Hedging and Market Awareness: Doug and Lee discuss Nvidia’s approach as a hedge against global competition (especially from China) and as a diversification strategy, similar to what Apple and other tech leaders have d…
NVIDIA’s $100B OpenAI bet signals shift from supplier to strategic co-builder - Electronic Products & Technology
NVIDIA’s recently announced commitment to invest up to $100 billion in OpenAI is far more than a capital infusion — it marks a transformation in how the hardware-maker envisions its role in the AI ecosystem. While past collaborations saw NVIDIA selling chips to AI firms, this deal positions it as a co-builder of the future AI infrastructure. The investment will be deployed gradually, tied to the phased deployment of AI “compute factories” in whi…
Nvidia’s OpenAI deal fuels ‘circular’ financing concerns as AI bubble risk fears grow
Three years after OpenAI Inc. and Nvidia Corp. helped kick off the global artificial intelligence frenzy, the two firms are joining forces to pave the way for a more costly phase of development with a deal that has revived fears of an AI bubble.
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