Nvidia and OpenAI Seal a Monumental $100B AI Infrastructure Deal
In a move that has left the tech industry reeling, Nvidia and OpenAI have unveiled a historic $100 billion strategic partnership. This partnership, announced on Monday, stands as one of the largest AI infrastructure deals ever made. The agreement entails Nvidia’s commitment to invest up to $100 billion in OpenAI, facilitating the construction of colossal data centers powered by millions of Nvidia GPUs.
The partnership stipulates the deployment of a minimum of 10 gigawatts of computing power. According to Nvidia CEO Jensen Huang, this is equivalent to between 4 and 5 million graphics processing units. This figure mirrors what Nvidia ships in a typical year and is double what it shipped the previous year. The first phase of deployment, set to utilize Nvidia’s next-generation Vera Rubin platform, is slated to come online in the latter half of 2026.
The deal was cemented during intense, last-minute negotiations between CEOs Sam Altman and Jensen Huang. The terms were finalized during President Trump’s UK visit. Following the announcement, Nvidia’s stock experienced a nearly 4% surge, adding an estimated $170 billion to its market cap. This surge solidified Nvidia’s status as the world’s most valuable public company, with a market cap nearing $4.5 trillion.
Source: CNBC