OpenAI and Nvidia Announce $100 Billion AI Partnership

OpenAI and Nvidia have announced a memorandum of understanding for a massive $100 billion partnership aimed at reshaping how artificial intelligence systems are trained and deployed. The plan includes using at least 10 gigawatts of Nvidia hardware to support OpenAI’s AI infrastructure, enabling the training and operation of future superintelligent models.

Partnership Details and Impacts

The agreement involves Nvidia investing up to $100 billion in OpenAI over the deployment phases of the systems. The first phase is scheduled to begin in the second half of 2026 using Nvidia’s upcoming Vera Rubin platform.

This move highlights the interconnectedness of major players in the AI field. Nvidia, the primary supplier of AI chips, will gain a financial stake in OpenAI, one of its largest clients. For OpenAI, the agreement provides funding and assurance of access to the necessary Nvidia processors.

This development might disrupt competitors, as it could be seen as bolstering Nvidia’s dominance in the chip sector and OpenAI’s superiority in AI software, raising questions about fair competition.

Deal Structure

According to an informed source, once a final agreement is reached, OpenAI will officially purchase Nvidia systems. Nvidia will then make an initial $10 billion investment in OpenAI, which was recently valued at $500 billion.

The first batch of Nvidia hardware is expected to be delivered in late 2026, with one gigawatt of computing power coming online via the Vera Rubin platform in the second half of that year.

Analysts have welcomed the agreement but raised concerns about whether some of Nvidia’s investment might return to it through OpenAI’s chip purchases.

OpenAI’s Chip Ambitions

Like Google and Amazon, OpenAI has been exploring designing its own chips to reduce costs and reliance on Nvidia. According to a source close to the company, this deal does not alter its current plans, including its collaboration with Microsoft.

Reports earlier this year indicated that OpenAI is working with Broadcom and Taiwan Semiconductor Manufacturing Co. to design chips. Following the announcement of the partnership with Nvidia, Broadcom’s shares fell by 0.8%.

Conclusion

The partnership between OpenAI and Nvidia adds to a growing list of alliances among tech giants. The scale of the new deal may attract the attention of antitrust regulators. Some analysts have noted that this deal could strengthen the positions of both companies in ways that limit opportunities for competitors, making the market more challenging for other contenders like AMD in the chip sector or OpenAI’s rivals in AI models.