Nvidia has announced plans to invest up to $100 billion in OpenAI, deepening its involvement in the race to dominate global artificial intelligence infrastructure. The deal, revealed on Monday, would combine a massive chip supply agreement with a major equity stake in the ChatGPT creator.
Under the arrangement, Nvidia will provide data center chips to power OpenAI’s next-generation AI models, with deliveries expected to begin in late 2026. OpenAI will purchase the hardware outright, while Nvidia will acquire a non-controlling stake in the company, according to a person familiar with the matter.
The partnership represents one of the largest single commitments ever made in the AI sector. The first $10 billion of Nvidia’s investment is expected to be triggered once a definitive supply agreement is signed. OpenAI’s most recent valuation placed the company at roughly $500 billion.
The two firms have signed a letter of intent to deploy at least 10 gigawatts of Nvidia chips for OpenAI’s computing infrastructure, which would be among the most powerful AI clusters ever built. Both companies said they aim to finalize details in the coming weeks and expect the first phase to be online in the second half of 2026.
“Everything starts with compute,” OpenAI chief executive Sam Altman said. “Compute infrastructure will be the basis for the economy of the future, and we will utilize what we’re building with Nvidia to create new AI breakthroughs and empower people and businesses at scale.”
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The deal comes amid a surge of alliances in the AI sector. Nvidia last week announced a $5 billion investment in Intel, while Microsoft, OpenAI’s largest backer, recently agreed to new terms for its relationship with the AI firm, paving the way for a shift toward a for-profit structure.
Shares of Nvidia rose 4.4% following the news, while Oracle, which partners with OpenAI, SoftBank and Microsoft on the $500 billion Stargate AI data center project, gained nearly 5%.
Regulators could take notice of the deal. The Justice Department and Federal Trade Commission reached an agreement in 2024 allowing for potential antitrust investigations into Microsoft, Nvidia, and OpenAI’s growing dominance in the AI market.
Nvidia previously participated in a $6.6 billion funding round for OpenAI in October 2024. The latest move, analysts say, underscores the company’s ambition to remain the world’s leading provider of AI infrastructure at a time when demand for advanced computing power continues to soar.