In a landmark move that underscores the accelerating demand for artificial intelligence infrastructure, Nvidia has agreed to invest up to $100 billion in OpenAI. The deal, one of the largest ever seen in the AI space, will enable OpenAI to significantly expand its computing capacity by building new data centres powered by Nvidia’s cutting-edge processors.

The agreement, reported by Bloomberg, was confirmed through a joint announcement on Monday. Both companies signed a letter of intent outlining the roadmap, with initial funding of $10 billion to be unlocked once OpenAI brings its first gigawatt of computing power online. In return, Nvidia will secure equity in OpenAI, further aligning the fortunes of the two AI leaders.

Building AI Supercentres

The ambitious project is set to create 10 gigawatts of computing capacity dedicated to training and running OpenAI’s increasingly complex AI models. These new data centres will rely on Nvidia’s processors, widely regarded as the backbone of the modern AI revolution.

For OpenAI, this investment could not come at a better time. The company’s flagship product, ChatGPT, now attracts nearly 700 million weekly users, creating enormous pressure on its infrastructure. OpenAI has faced shortages during previous rollouts, and with CEO Sam Altman hinting at new “compute-intensive” products on the horizon, scaling its capacity has become urgent.

Explaining the strategic importance of the tie-up, Altman 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.”

Nvidia Secures Its AI Crown

For Nvidia, already the world’s most valuable company, the partnership reinforces its central role in the AI ecosystem. The chipmaker’s financial strength and unmatched dominance in high-performance processors have made its products indispensable to AI research and deployment worldwide.

By securing OpenAI—a company that has openly explored designing its own hardware—as a long-term partner, Nvidia effectively safeguards its position at the heart of the AI boom. The deal could also deter rival chipmakers attempting to break into the lucrative AI market.

Market Reaction and Investor Confidence

News of the investment sent ripples through financial markets. Nvidia’s stock surged by as much as 4 percent in New York trading on Monday, extending its gains this year to nearly 36 percent. The strong rally highlights how closely investors are tracking Nvidia’s strategic moves in AI, widely seen as one of the most transformative growth sectors of the decade.

While neither company has disclosed a specific timeline for completing the investment, both confirmed that negotiations are progressing and that a final agreement will be announced in the near future.

As AI adoption accelerates across industries, Nvidia and OpenAI’s partnership sets a new benchmark for how far companies are willing to go to secure the compute power that may well define the future economy.