Nvidia’s $100 Billion OpenAI Deal Raises Big Questions
“Nvidia bets $100 billion on OpenAI, fueling the next frontier of artificial intelligence.”
Nvidia’s plan to invest up to $100 billion in OpenAI while supplying millions of its leading AI chips to the ChatGPT creator represents a move unprecedented in the tech industry.
Under the agreement, Nvidia will take a financial stake in one of its largest customers without gaining any voting rights, according to sources close to OpenAI. While the deal provides significant capital for OpenAI, it will fund only a portion of the resources needed to build the supercomputers required for the next generation of artificial intelligence.
Nvidia’s initial $10 billion investment will support the deployment of one gigawatt of data center capacity using its next-generation Vera Rubin chips, with construction slated to begin in the second half of 2026.
Funding Questions Remain
The deal leaves several critical questions unanswered, including how OpenAI will secure the remaining capital. Nvidia CEO Jensen Huang previously estimated that building AI data centers costs roughly $50 billion per gigawatt, with $35 billion dedicated to Nvidia chips and equipment. With Nvidia contributing $10 billion per gigawatt, OpenAI must source an additional $40 billion for each gigawatt of planned capacity.
OpenAI has not commented publicly on its broader funding strategy, and Nvidia declined to provide further details beyond prior statements.
Transitions for For-Profit Status
The partnership also intersects with OpenAI’s ongoing shift from a non-profit research organization toward a for-profit public benefit corporation, a structure aimed at facilitating large-scale fundraising and eventual public listing.
Discussions with Microsoft, an early investor in OpenAI’s computing infrastructure, have yielded a tentative agreement, but the restructuring still requires approval from state regulators in Delaware and California.
A person familiar with the matter confirmed that Nvidia’s cash investment will begin only after a definitive agreement is reached, signaling careful coordination as OpenAI charts its ambitious expansion in artificial intelligence.
