Nvidia has announced a significant investment of up to $100bn (£74bn) in OpenAI, securing a substantial stake in ChatGPT’s parent company.
This partnership provides OpenAI with the financial resources and access to advanced chips necessary to uphold its leadership position.
As part of the agreement, Nvidia is set to acquire non-voting shares in OpenAI later this year.
OpenAI will then utilize these funds to purchase Nvidia’s chips, crucial for enhancing its processing power and expanding its data center capacity.
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In a statement, OpenAI CEO Sam Altman expressed, «Compute infrastructure will serve as the foundation for the future economy, and our collaboration with Nvidia will enable us to develop groundbreaking AI innovations and make them accessible to individuals and businesses on a large scale.»
This investment builds upon a series of similar deals in recent times, with Nvidia being one of the top US technology companies to announce a significant investment in the UK during President Donald Trump’s recent state visit.
«This collaboration enhances the ongoing efforts of OpenAI and Nvidia, alongside a diverse group of partners such as Microsoft, Oracle, SoftBank, and Stargate, dedicated to establishing the most advanced AI infrastructure globally,» the companies stated.
Despite the positive outlook, the agreement may attract scrutiny from competition authorities.
Simultaneously, OpenAI, alongside Google, Amazon, and others, has been exploring the development of its own AI chips as a cost-effective alternative to Nvidia.
Matt Britzman, a senior equity analyst at Hargreaves Lansdown, commented on the partnership, stating, «For Nvidia, the potential is immense – each gigawatt of AI data center capacity represents approximately $50bn in revenue, indicating that this initiative could be valued at up to $500bn.
«This move solidifies Nvidia’s position as the leading force in AI at a time when custom chips from major players and startups had begun to challenge its dominance.
«By solidifying OpenAI as a strategic partner and aligning hardware and software roadmaps, Nvidia ensures that its GPUs continue to serve as the cornerstone of next-generation AI infrastructure.
«While the market accommodates multiple players, this agreement underscores Nvidia’s leadership in terms of scale and ecosystem depth, setting the pace and raising the bar for the industry.»