OpenAI and Nvidia have signed a letter of intent for a $100B partnership that could reshape how AI systems are trained and deployed. The plan calls for at least 10 gigawatts of Nvidia hardware to support OpenAI’s next-generation AI infrastructure, which will train and run future models aimed at superintelligence.
To support the rollout, Nvidia intends to invest up to $100 billion in OpenAI as the systems are deployed. The first phase is scheduled to go live in the second half of 2026, powered by Nvidia’s upcoming Vera Rubin platform.
A deal with wide implications
The agreement shows how closely tied the largest AI players are becoming. Nvidia, the main supplier of AI chips, would gain a financial stake in OpenAI, one of its biggest customers. For OpenAI, the deal brings both funding and guaranteed access to Nvidia’s sought-after processors.
The move could unsettle rivals. Some may see it as reinforcing Nvidia’s dominance in chips and OpenAI’s lead in AI software, raising questions about fair competition.
A person familiar with the matter said the partnership involves two linked steps: Nvidia will buy non-voting shares in OpenAI, and OpenAI will then use that money to purchase Nvidia chips.
OpenAI on why compute drives AI growth
“Everything starts with compute,” OpenAI CEO Sam Altman said in a statement. “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.”
The companies said details of the partnership will be settled in the coming weeks. They also noted that 10 gigawatts of chips would consume as much power as more than 8 million US households.
Nvidia’s stock climbed as much as 4.4% to a record high after the news. Oracle, which is working with OpenAI, SoftBank, and Microsoft on a $500 billion global AI data centre project called Stargate, rose about 6%.
How the deal is structured
According to the person familiar with the talks, once a final agreement is reached, OpenAI will formally purchase Nvidia systems. Nvidia will then invest an initial $10 billion in OpenAI, which was last valued at $500 billion.
The first delivery of Nvidia hardware is expected in late 2026, with one gigawatt of computing power coming online in the second half of that year on the Vera Rubin platform.
Analysts welcomed the agreement but raised concerns about whether some of Nvidia’s investment could flow back to it through OpenAI’s chip purchases.
“On the one hand this helps OpenAI deliver on what are some very aspirational goals for compute infrastructure, and helps Nvidia ensure that that stuff gets built. On the other hand the ‘circular’ concerns have been raised in the past, and this will fuel them further,” said Stacy Rasgon, an analyst at Bernstein.
OpenAI’s other AI chip ambitions
OpenAI, like Google and Amazon, has been exploring its own custom chips to lower costs and reduce…
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