As part of a new strategic partnership, US-based tech major Nvidia has announced its decision to invest up to $100 billion into OpenAI while also planning to supply the ChatGPT creator with millions of artificial intelligence chips.
The deal will allow Big Tech Nvidia to take financial stake in the firm and pump in the money it needs to build the supercomputers to develop new generations of AI. However, Nvidia will not be given any voting power in OpenAI.
The first phase is targeted to come online in the second half of 2026 using the NVIDIA Vera Rubin platform.
“NVIDIA and OpenAI have pushed each other for a decade, from the first DGX supercomputer to the breakthrough of ChatGPT,” said Jensen Huang, founder and CEO of NVIDIA. “This investment and infrastructure partnership mark the next leap forward – deploying 10 gigawatts to power the next era of intelligence.”
Sam Altman, co-founder and CEO of OpenAI, said everything starts with compute. “Compute infrastructure will be the basis for the economy of the future, and we will utilise what we’re building with NVIDIA to both create new AI breakthroughs and empower people and businesses with them at scale,” he stated.
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OpenAI, currently valued at $500 billion, has also signed a contract with Oracle for being provided with cloud computing services against hundreds of billions of dollars, although analysts are questioning if OpenAI has the cash to pay for the contracts.
“We’ve been working closely with NVIDIA since the early days of OpenAI,” said Greg Brockman, cofounder and president of OpenAI. “We’ve utilized their platform to create AI systems that hundreds of millions of people use every day. We’re excited to deploy 10 gigawatts of compute with NVIDIA to push back the frontier of intelligence and scale the benefits of this technology to everyone.”
Earlier, OpenAI is said to have held extensive talks with Microsoft, another of its major shareholders, to convert from a non-profit corporation to a for-profit public benefit corporation that would be overseen by OpenAI’s existing non-profit. It wasn’t yet clear whether Nvidia will invest in OpenAI’s non-profit entity or await its conversion to a public benefit corporation overseen by a non-profit.
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