NVIDIA and OpenAI agree to $100 billion investment to ramp up AI arithmetic infrastructure

September 22, local time.NVIDIA,announced that it would gradually move toOpenAIInvesting up to $100 billion in AI data centers with 10 gigawatts (gigawatts) of power capacity to train and run next-generation models.

Jen-Hsun Huang, NVIDIA's founder and CEO, said that building a 10 gigawatt data center would require the deployment of roughly 4 to 5 million GPUs, which is equivalent to the company's total shipments this year, or twice last year. Jen-Hsun Huang described it as "the largest AI infrastructure project in history."

The two companies also announced that they will deploy the first GW-class data center based on NVIDIA's Vera Rubin platform in the second half of 2026.

OpenAI to use NVIDIA for AI Factory growth programPreferred strategic computing and network partnersOpenAI and NVIDIA will also work together to optimize OpenAI's model and infrastructure software, as well as NVIDIA's hardware and software roadmap. The two sides are expected to finalize the details of the collaboration in the coming weeks.

NVIDIA shares jumped nearly 41 TP4T to $183.61 after the announcement of these partnerships.Market capitalization of $4.47 trillion (about Rs. 31.8 trillion)that both hit their all-time highs. However, in after-hours trading, NVIDIA shares slipped slightly.

OpenAI's collaboration with NVIDIA dates back to 2016. At that time, Jen-Hsun Huang had personally delivered the first AI supercomputer, DGX-1, to the fledgling OpenAI.

According to the announcement, the first phase of deployment of this $100 billion partnership is expected to go live in the second half of 2026, using NVIDIA's next-generation Rubin architecture for the platform. In the coming weeks, the two parties will finalize the details of this strategic partnership.

According to the official statement, nvidia and openAI this cooperation, as the "stargate" (Stargate) project complement. The project was launched in January this year, by Oracle, OpenAI and Japan's Softbank Group, a joint venture of three companies, will invest $500 billion in the next four years, the construction of 10 gigawatts of electric power capacity in the United States of America, AI infrastructure. openAI is responsible for the operation of the project, and with Microsoft, nvidia, oracle and other companies to maintain close cooperation.

In July this year, OpenAI and Oracle separate agreement to increase the "stargate" project power capacity by an additional 4.5 GW, but did not disclose the specific size of the cooperation. mid-September, the U.S. media reported that OpenAI plans to buy $300 billion worth of computing power in about five years. The news stunned the market, driving Oracle's stock price soaring. As OpenAI's annual revenue is only about $10 billion, many voices questioned the reality of the feasibility of this $300 billion cooperation.

With the announcement of NVIDIA's investment in OpenAI, the outside world began to focus on OpenAI, NVIDIA and Oracle's "triangular relationship". In this closed-loop relationship, NVIDIA provides financial support for OpenAI, OpenAI buys cloud computing power services from Oracle, and Oracle purchases chips from NVIDIA, and the three parties share the same honor and disgrace in this AI computing power game. The big modeling giant has long used Microsoft's Azure cloud computing services since Microsoft invested in OpenAI in 2019. The deepening partnership with Oracle has been interpreted as OpenAI reducing its dependence on Microsoft.

OpenAI is also exploring self-developed chips to reduce its absolute dependence on Nvidia. on September 4, Hock Tan, president and CEO of Broadcom, a US-based ASIC chip service provider, disclosed in an earnings call that the company has added a new heavyweight customer on top of its previous three major customers, which has ordered more than $10 billion worth of customized AI chips. Although Hock Tan did not disclose the identity of the fourth major customer, a number of U.S. media reports, citing people familiar with the matter, said the customer is OpenAI.

With NVIDIA now the world's highest market capitalization public company and OpenAI one of the world's most highly valued private companies, the partnership between these two giants is another shot in the arm for global AI infrastructure investment.

With the advancement of the "largest arithmetic project in history", AI is accelerating from concept to reality, and in the future, we are expected to witness the full realization of AI in the fields of healthcare, education, scientific research and industry.