Nvidia Eyes Up to $100 Billion Investment in OpenAI Data Centers

In a move signaling the escalating demands of artificial intelligence development, Nvidia is set to inject a staggering $100 billion into OpenAI. The landmark agreement, revealed Monday, will fuel OpenAI’s ambitious plan to construct data centers powered by Nvidia’s AI processors, demanding an unprecedented 10 gigawatts of power.

This power requirement underscores the sheer scale of computing infrastructure needed to train and deploy increasingly sophisticated AI models. According to Nvidia CEO Jensen Huang, that 10 gigawatts translates to approximately 4 to 5 million GPUs—representing Nvidia’s entire GPU output for this year, effectively doubling last year’s shipments.

Speaking alongside OpenAI CEO Sam Altman and President Greg Brockman, Huang emphasized the monumental nature of the collaboration. The initial $10 billion tranche of Nvidia’s investment will be triggered upon the completion of the first gigawatt of infrastructure, with subsequent investments phased in at prevailing market valuations, according to sources familiar with the deal.

The market responded positively, with Nvidia’s stock surging almost 4% on Monday, adding approximately $170 billion to its market capitalization, bringing it close to $4.5 trillion. But analysts say this isn’t just about today’s stock price. The strategic alliance reinforces the symbiotic relationship between Nvidia and OpenAI, the driving forces behind the current AI boom.

“Nvidia invests $100 billion in OpenAI, which then OpenAI turns back and gives it back to Nvidia,” noted Bryn Talkington, managing partner at Requisite Capital Management, in a post-announcement interview. “I feel like this is going to be very virtuous for Jensen.” The investment effectively creates a closed-loop ecosystem, funneling resources back into Nvidia’s cutting-edge hardware.

Beyond the financial mechanics, the partnership highlights OpenAI’s voracious appetite for computing power as they develop next-generation AI models. With 700 million weekly active users, the pressure is on to scale infrastructure and refine existing algorithms to serve an ever-growing user base.

“You should expect a lot from us in the coming months,” Altman stated, underscoring OpenAI’s commitment to AI research, product development, and navigating the challenges of scalable infrastructure deployment.

While Nvidia will be OpenAI’s “preferred” supplier, the company faces mounting competition in the AI chip market from rivals like Advanced Micro Devices and cloud providers developing custom silicon solutions. The rise of domain-specific architectures tailored to AI workloads is forcing Nvidia to continually innovate and defend its dominant position.

Huang previously estimated the cost of building one gigawatt of data center capacity at $50 to $60 billion, with around $35 billion attributed to Nvidia chips and systems. The initial phase of this OpenAI investment is slated to go live in the latter half of 2026, leveraging Nvidia’s next-generation Vera Rubin systems, indicating a long-term roadmap and significant technological advancements on the horizon.

This news follows a recent secondary round valuing OpenAI at $500 billion, attracting investment from industry giants like Microsoft, SoftBank, and Thrive Capital. Microsoft’s existing strategic partnership with OpenAI integrates their models into Azure and Microsoft Office, further solidifying OpenAI’s position in the AI landscape.

The collaboration with Nvidia is positioned as a complement to OpenAI’s existing infrastructure initiatives with Microsoft, Oracle, SoftBank, and the Stargate project. Altman characterized Nvidia and Microsoft as “passive” investors and “critical partners,” emphasizing the collaborative nature of these alliances.

Huang clarified that Nvidia’s investment is “additive” to existing commitments and financial expectations, suggesting that it will not impact previously communicated guidance to Wall Street. While this commitment dwarfs previous investments, Nvidia has increasingly allocated capital to companies within the AI ecosystem. This includes a recent $5 billion stake in Intel aimed at fostering collaboration on AI processors and a substantial investment in U.K. data center startup Nscale.

These strategic investments, coupled with the unprecedented OpenAI partnership, solidify Nvidia’s central role in shaping the future of AI infrastructure and its ongoing dominance in the rapidly evolving landscape of artificial intelligence.