Nvidia Invests $100 Billion in OpenAI, Creating AI Data Centers and Superintelligence Partnership
In a groundbreaking deal announced on Monday, Nvidia will invest up to $100 billion in OpenAI, the company behind the popular ChatGPT chatbot. This massive investment will focus on developing artificial intelligence data centers and AI superintelligence, marking a significant partnership between two tech giants.
According to Forbes, OpenAI will utilize at least 10 gigawatts worth of Nvidia systems for infrastructure used to train AI models. To put this into perspective, 10 gigawatts could roughly power five Hoover Dams. This substantial investment is expected to drive the development of AI data centers and superintelligence, with the first phase set to begin in the second half of 2026 using Nvidia's next-generation Vera Rubin systems.
The partnership will also see OpenAI build data centers requiring 10 gigawatts of power capacity, which equals approximately 4 to 5 million GPUs. This is a significant deployment, considering that Nvidia ships around 4 to 5 million GPUs globally each year. Building one gigawatt of data center capacity costs between $50 to $60 billion, with Nvidia chips and systems accounting for around $35 billion.
Nvidia CEO Jensen Huang described the investment as "additive to everything that's been announced and contracted." This deal adds Nvidia to OpenAI's investor roster alongside Microsoft, SoftBank, and Thrive Capital at a valuation of $500 billion. The partnership is expected to drive innovation in AI research and development, with potential applications in various industries.
The massive investment by Nvidia in OpenAI has sparked interest among experts and investors alike. According to Antonio Pequeño IV of Forbes, "This deal marks a significant shift in the tech industry, as two major players come together to push the boundaries of artificial intelligence." The partnership is expected to drive growth and innovation in AI research and development.
In related news, Nvidia's investment in OpenAI has sparked concerns about the environmental impact of such massive data centers. According to experts, building one gigawatt of data center capacity can result in significant greenhouse gas emissions. However, Nvidia and OpenAI have not commented on these concerns.
The partnership between Nvidia and OpenAI is expected to drive innovation in AI research and development, with potential applications in various industries. As the first phase begins in 2026, experts will be closely watching the progress of this massive investment. With a valuation of $500 billion, this deal marks a significant milestone in the tech industry.
In conclusion, Nvidia's $100 billion investment in OpenAI is set to drive innovation and growth in AI research and development. As the partnership begins to take shape, experts and investors will be closely watching the progress of this massive deal. With potential applications in various industries, this partnership has the potential to revolutionize the tech industry.
Sources:
Forbes: "Nvidia Will Invest $100 Billion In OpenAI: Here’s What To Know"
Slashdot: "Nvidia To Invest $100 Billion in OpenAI"
This story was compiled from reports by Forbes and Slashdot.
