Nvidia's $100 Billion Bet on OpenAI: 10 Gigawatts of AI Data Centers and a Major Stake
Nvidia has struck a major deal with OpenAI, set to be its largest investment to date. The agreement, worth $100 billion, will see Nvidia become a significant shareholder in OpenAI and build 10 gigawatts of AI data centers. The news sent Nvidia's stock soaring by 4%, reaching an all-time high.
Nvidia has a history of investing in companies that are part of its supply chain. This deal is no different, with OpenAI being a long-time customer, using Nvidia's technology since its inception. The project will involve millions of Nvidia GPUs, further cementing OpenAI's reliance on Nvidia's products.
The investment will be made progressively as each gigawatt of data centers is deployed, with the first phase expected to come online in the second half of 2026. These initial data centers will use chips from Nvidia's upcoming Vera Rubin platform. The exact timeline and locations for the rest of the project remain unclear.
The deal also serves as a strategic move for Nvidia. By incentivizing OpenAI to use its products, Nvidia can block competitors like AMD from encroaching on its market share lead.
The OpenAI deal, if fulfilled, will be Nvidia's biggest investment to date, making it a major shareholder in OpenAI. With a planned $100 billion investment over time, Nvidia aims to build 10 gigawatts of AI data centers, using millions of its GPUs. This strategic move is expected to entrench Nvidia's market leadership and deliver strong returns on its investments.
