Nvidia to invest $100bn in OpenAI partnership

Nvidia has announced a strategic partnership involving up to $100bn (£73bn) in investment with OpenAI, the organisation behind ChatGPT. The partnership represents one of the largest commitments in the global AI infrastructure race, where competition from China continues to intensify.

Context and Background

The world’s most valuable company will supply high-performance chips essential for OpenAI’s data centres and next-generation AI infrastructure. Nvidia CEO Jensen Huang described the funding as marking “the next leap forward and power the next era of intelligence.”

OpenAI currently serves more than 700 million weekly active users and will utilise the partnership to advance its mission of building artificial general intelligence. The collaboration builds on existing relationships with Microsoft, Oracle, SoftBank, and Stargate to create what both companies describe as “the world’s most advanced AI infrastructure.”

This investment follows Nvidia’s recent £2bn commitment to the UK’s AI sector and a $5bn investment in rival chipmaker Intel, demonstrating the company’s aggressive expansion strategy in the AI market.

Looking Forward

The partnership comes as US AI dominance faces challenges from Chinese competitors, particularly with the emergence of DeepSeek-R1. Both Nvidia and OpenAI are navigating complex geopolitical pressures, with China recently alleging Nvidia violated anti-monopoly laws and reportedly ordering domestic tech companies to halt purchases of Nvidia’s AI chips.

The deal’s final details will be finalised in the coming weeks, whilst Nvidia’s shares closed 4% higher following the announcement. OpenAI co-founder Sam Altman emphasised the partnership would enable both organisations to “create new AI breakthroughs and empower people and businesses with them at scale.”

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