Nvidia investing up to $100B in ChatGPT owner OpenAI to create ‘new AI breakthroughs'

Core Insights - Nvidia will invest up to $100 billion in OpenAI, providing data center chips, highlighting the collaboration between two leaders in the AI sector [1] - The investment will enable OpenAI to acquire advanced chips necessary to maintain its competitive edge [2] - The deal consists of two transactions: OpenAI will pay Nvidia for chips, while Nvidia will invest in non-controlling shares of OpenAI [3] Investment Details - The initial $10 billion of Nvidia's investment will commence once a definitive agreement is reached for OpenAI to purchase Nvidia systems [3] - OpenAI's most recent valuation stands at $500 billion [3] - Nvidia plans to deliver hardware starting in late 2026, with the first gigawatt of computing power to be deployed on its Vera Rubin platform [4] Strategic Partnership - The companies signed a letter of intent to deploy at least 10 gigawatts of Nvidia chips for OpenAI's AI infrastructure [7][8] - Nvidia's shares increased by up to 4.4%, while Oracle's shares rose nearly 5% following the announcement [8] Future Implications - OpenAI CEO Sam Altman emphasized that compute infrastructure will be foundational for the future economy, aiming to leverage Nvidia's technology for AI advancements [4][10] - Nvidia's investment follows a recent $5 billion commitment to Intel, indicating a broader strategy in the semiconductor space [10] Regulatory Considerations - The significant investment by Nvidia in OpenAI may attract antitrust scrutiny, especially given the dominant positions of these companies in the AI industry [11][13]