Nvidia (NVDA) stock jumped roughly 4% on Monday as the chipmaker announced it will invest up to $100 billion in OpenAI as part of a new partnership.
Nvidia said in its announcement that the partnership will allow OpenAI to deploy “at least 10 gigawatts” of compute capacity from the chipmaker’s AI systems to train and run the ChatGPT maker’s next generation of artificial intelligence models. The first phase of that compute capacity utilizing Nvidia’s upcoming Vera Rubin platform is set to come online in the second half of 2026, according to the company.
Read more about Nvidia’s stock moves and today’s market action.
AI apps are widely powered by Nvidia’s AI systems built on its GPUs (graphics processing units), or AI chips, that fill remote data centers across the country.
“This is the biggest AI infrastructure project in history,” CEO Jensen Huang said in an interview with CNBC Monday.
“NVIDIA and OpenAI have pushed each other for a decade, from the first DGX supercomputer to the breakthrough of ChatGPT,” Huang said in a separate statement.
The OpenAI-Nvidia deal is an ambitious undertaking for the companies. For reference, Meta’s mammoth 4 million square foot AI data center under construction in Louisiana is set to deliver about two gigawatts of compute capacity — around one fifth of the power OpenAI and Nvidia are promising to deliver. The plan to deploy 10 gigawatts of capacity would equate to 4 million to 5 million of Nvidia’s GPUs, according to CFRA analyst Angelo Zino.
Nvidia’s OpenAI deal comes as the company rapidly expands its AI investments. Last week, Nvidia took a $5 billion stake in fellow chipmaker Intel (INTC), part of a partnership to use Intel’s CPUs (central processing units) in Nvidia’s AI systems. The AI giant also announced plans to deploy tens of thousands of AI chips across the UK. It also signed a $6.3 billion deal with CoreWeave (CRWV) that guarantees Nvidia will purchase unsold compute capacity from the AI data center operator.
“While some still raise concerns about AI being a potential bubble, Nvidia’s investment signals that the need for AI infrastructure is real and still expanding,” Carnegie Investment Counsel director of research Greg Halter said.
OpenAI, meanwhile, has been moving to secure more AI data center capacity despite concerns over the company’s ability to grow profitably. The tech firm recently signed a $300 billion deal to purchase computing power from Oracle (ORCL) over the next five years, according to the Wall Street Journal.
