NVIDIA
Nvidia just dropped $100B, and it all loops back
Nvidia will put up to $100 billion into OpenAI and supply it with powerful data centre chips.
The move ties together two of the biggest names in AI: Nvidia gets a stake in OpenAI, while OpenAI gets the compute it needs to keep up in the race.
The deal works like this: Nvidia invests in non-voting shares, and OpenAI uses the money to buy Nvidia chips.
Together, they plan to deploy at least 10 gigawatts of Nvidia systems, roughly the power use of 8 million U.S. homes.
The first hardware, built on Nvidia’s new Vera Rubin platform, is due in late 2026.
The news sent Nvidia’s shares to record highs, while Oracle also gained thanks to its role in the $500 billion Stargate data centre project with OpenAI, Microsoft, and SoftBank.
But analysts warned the deal looks “circular” since OpenAI will spend much of the money back on Nvidia’s own products.
Here’s what you should know:
Nvidia will put in $10 billion once OpenAI agrees to buy its systems.
The partnership could strengthen Nvidia’s position but also raise competition concerns.
OpenAI is valued at $500 billion and still pursuing custom chip projects.
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OpenAI is still developing its own custom chips with Broadcom and TSMC, while keeping close ties with Microsoft.
The deal comes as U.S. regulators prepare possible antitrust reviews into the growing power of Microsoft, Nvidia, and OpenAI.
So Nvidia is investing in OpenAI… to pay Nvidia. Make it make sense.