Deal will involve two transactions – OpenAI will pay Nvidia for chips, and the chipmaker will invest in the AI start-up
Nvidia, the chipmaking company, will invest up to $100bn in OpenAI and provide it with data center chips, the companies said on Monday, a tie-up between two of the highest-profile leaders in the global artificial intelligence race.
The deal, which will see Nvidia start delivering chips as soon as late 2026, will involve two separate but intertwined transactions, according to a person close to OpenAI. The startup will pay Nvidia in cash for chips, and Nvidia will invest in OpenAI for non-controlling shares, the person said.
The first $10bn of Nvidia’s investment in OpenAI, which was most recently valued at $500bn, will begin when the two companies reach a definitive agreement for OpenAI to purchase Nvidia chips. Nvidia previously funded OpenAI with a $6.6bn investment. The ChatGPT maker has pledged 49% of its profits to Microsoft after a $13bn investment made in 2023. OpenAI is in the midst of a long and much-litigated process to convert to a for-profit entity.
The companies unveiled a letter of intent for a landmark strategic partnership to deploy at least 10GW of Nvidia chips for OpenAI’s AI infrastructure.
