OpenAI and Nvidia have signed a letter of intent for a $100 billion partnership. The deal could reshape how AI is trained and deployed worldwide.
The plan calls for 10 gigawatts of Nvidia’s new Vera Rubin platform. This massive infrastructure will support OpenAI’s next-generation models, designed with the ambition of reaching superintelligence.
How the Deal Works
The partnership has two connected steps. First, Nvidia will purchase non-voting shares in OpenAI. Then, OpenAI will use that money to buy Nvidia chips.
Nvidia expects to invest an initial $10 billion once the contract is finalized. Deliveries will begin in late 2026. At that point, the first gigawatt of power will go online.
Why It Matters
This agreement ties the two companies closer together. On one hand, Nvidia secures one of its largest customers. On the other hand, OpenAI gains fresh funding and guaranteed access to high-demand processors.
However, analysts caution that the structure could raise concerns. Some fear Nvidia’s investment may circle back through chip sales, further strengthening its dominance.
“This helps OpenAI achieve ambitious compute goals while keeping Nvidia central,” said Stacy Rasgon of Bernstein. “But circular concerns are real.”
A Shift in the AI Race
OpenAI CEO Sam Altman stressed the importance of the deal:
“Everything starts with compute. Infrastructure will drive the economy of the future. What we’re building with Nvidia will power breakthroughs and help people and businesses at scale.”
The rollout of 10 gigawatts would require as much electricity as 8 million U.S. homes. As a result, the partnership highlights both the promise and the strain of large-scale AI.
Markets reacted quickly. Nvidia stock climbed 4.4% to a record high, while Oracle gained 6%. Oracle is working with OpenAI, SoftBank, and Microsoft on Stargate, a $500 billion global AI data center project.
Competition and Regulation
The scale of the deal could also attract regulators. Last year, U.S. authorities agreed to monitor the roles of Microsoft, Nvidia, and OpenAI in the AI market.
Antitrust lawyer Andre Barlow explained:
“This deal could lock Nvidia’s chip monopoly to OpenAI’s software lead. Therefore, it may limit rivals like AMD from scaling.”
OpenAI’s Other Chip Efforts
Importantly, OpenAI is not relying only on Nvidia. The company is also developing custom chips with Broadcom and TSMC. This strategy aims to cut costs and reduce dependence. After the Nvidia news, however, Broadcom shares slipped 0.8%.
Broader Industry Context
In addition, the deal adds to a series of alliances in AI:
- Microsoft has invested billions in OpenAI since 2019.
- Nvidia recently signed a chip partnership with Intel and pledged $5 billion in funding.
- In October 2024, Nvidia joined OpenAI’s $6.6 billion fundraising round.
Meanwhile, OpenAI has reached 700 million weekly active users. Adoption spans startups, enterprises, and developers. Therefore, the Nvidia partnership is seen as key to pushing forward toward artificial general intelligence.
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