OpenAI and Nvidia are preparing to launch a partnership worth up to $100 billion, a deal that could reshape the infrastructure underpinning the future of artificial intelligence.
According to people familiar with the matter, the two companies have signed a letter of intent that would see Nvidia supply at least 10 gigawatts of computing power to OpenAI, starting with the rollout of Nvidia’s upcoming Vera Rubin platform in the second half of 2026. The project is designed to fuel OpenAI’s next-generation AI systems, including its ambitions for artificial general intelligence (AGI).
How the Deal Works
Under the proposed structure, Nvidia will invest up to $100 billion in non-voting shares of OpenAI, while OpenAI will use those funds to purchase Nvidia’s chips. The first phase includes an initial $10 billion investment, with one gigawatt of computing power expected to come online in late 2026.
The scale is striking. Ten gigawatts of Nvidia systems would consume as much electricity as 8 million U.S. households, underscoring both the opportunity and the challenge of building AI infrastructure at this level.
What It Means for Both Companies
For OpenAI, the agreement secures guaranteed access to the world’s most in-demand processors, along with funding to build out the infrastructure required for larger, more advanced AI models. For Nvidia, the deal cements its role not just as a chip supplier but as a financial partner in one of the fastest-growing AI companies.
“Everything starts with compute,” said OpenAI CEO Sam Altman 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.”
Market and Industry Reactions
News of the partnership sent Nvidia stock up 4.4% to a record high and boosted shares of Oracle, which is collaborating with OpenAI, SoftBank, and Microsoft on the $500 billion Stargate data center project. Oracle rose about 6% on the announcement.
Still, some analysts voiced concerns. Stacy Rasgon of Bernstein pointed out that Nvidia’s investment in OpenAI could appear “circular,” with money flowing back to Nvidia through chip purchases.
Others noted the potential regulatory implications. With Microsoft already a major investor in OpenAI and Nvidia dominating the chip market, the partnership may attract antitrust scrutiny.
“The deal could change the economic incentives of Nvidia and OpenAI as it could potentially lock in Nvidia’s chip monopoly with OpenAI’s software lead,” said Andre Barlow, an antitrust lawyer at Doyle, Barlow & Mazard.
OpenAI’s Broader Chip Strategy
Despite the scale of the Nvidia deal, OpenAI is not abandoning efforts to diversify its compute strategy. The company has been working with Broadcom and Taiwan Semiconductor Manufacturing Co. (TSMC) on custom chips, according to earlier reports. That effort is meant to reduce costs and dependence on Nvidia over time. Following the Nvidia news, Broadcom shares slipped 0.8%.
OpenAI now counts more than 700 million weekly active users worldwide, and demand from businesses and developers shows no signs of slowing. The Nvidia partnership is expected to accelerate its path toward AGI while helping maintain momentum in a highly competitive industry.
The Bigger Picture
The agreement underscores how intertwined the world’s largest AI players have become. Microsoft, Nvidia, and OpenAI are increasingly linked through financial, technological, and strategic partnerships. While the deal could give both companies a significant edge, it also raises questions about market concentration, competition, and the sustainability of AI’s massive energy demands.
