Nvidia and OpenAI Announce $100 Billion Strategic Partnership

Nvidia announced that it intends to invest up to $100 billion in OpenAI, the company behind ChatGPT. And the question we have today is this: Why would someone invest $100 billion in one of its customers? Because yes, you read that right — OpenAI is already a customer of Nvidia .

THE PLAN

Let’s start with the basics. OpenAI is planning to build data centers with a total power capacity of 10 gigawatts, based on Nvidia GPUs. To put this into perspective, that corresponds to 4–5 million GPUs, which is the total number Nvidia ($NVDA) plans to deliver in 2025! In other words, OpenAI is essentially committing to absorb an entire year’s production!

And this is just the beginning. The 10 gigawatts of power is a scale we used to hear only in the context of national energy grids. The fact that we’re now talking about such figures in the field of data centers proves just how enormous the upcoming demand for AI infrastructure will be.

The first phase of this project is expected to begin in the second half of 2026 and will be based on Nvidia’s next-generation systems called Vera Rubin. According to CEO Jensen Huang, this system is specifically designed to support the most demanding artificial intelligence applications.

And now we get to the really smart part.

Nvidia is investing in OpenAI, which in turn will use those funds to buy even more Nvidia products! It’s a circular investment. I give you the money so that you can pay me back by purchasing my product. Something like, “I’ll give you the cash so you can buy from me.” Genius.

In reality, this is a type of strategic partnership we’ve seen in other industries before, but never at this scale. OpenAI needs ever more computing power, and Nvidia is there to provide it. In this way, it locks in one of its biggest customers for the long term.

NVIDIA EXPANDS

And of course, this isn’t the only partnership Nvidia is building.

Just last week, it announced:

• a $5 billion investment in Intel,

• a $700 million investment in the UK startup Nscale,

• and over $900 million to acquire expertise and talent from Enfabrica.

The strategy is clear. Nvidia isn’t just waiting to see where the market goes. It’s taking initiative and positioning itself exactly where it believes the future will be built. And so far, its moves have paid off.

And what are the markets saying about this? I think it’s obvious. On the day of the announcement, Nvidia’s stock rose by almost 4%, adding about $170 billion to its market capitalization. Its total value is now approaching $4.5 trillion!

Posted Using INLEO