Nvidia and OpenAI Partner in $100B AI Data Center Deal

Nvidia and OpenAI have announced a strategic partnership to develop advanced AI data centers, with Nvidia potentially investing up to $100 billion. This collaboration aims to accelerate the development of artificial general intelligence and strengthen OpenAI's market leadership. Sources indicate that Nvidia intends to acquire non-voting shares in OpenAI, with OpenAI subsequently utilizing these funds to procure Nvidia's cutting-edge data center chips. The letter of intent outlines OpenAI's commitment to deploying a minimum of 10 gigawatts of Nvidia systems for AI model training. To contextualize this scale, the power requirement equates to that of five Hoover Dams, or the energy needed to power over eight million U.S. households. Nvidia CEO Jensen Huang estimates the cost of building a single gigawatt of data center capacity to be between $50 billion and $60 billion. The investment will be phased in as systems become operational, with the initial gigawatt anticipated to be online by the second half of 2026. OpenAI CEO Sam Altman emphasized the critical role of robust compute infrastructure in the future economy, supporting the company's 700 million weekly users and enabling further advancements in AI. The agreement may face regulatory scrutiny due to potential antitrust implications. Following the announcement, Nvidia's stock price surged by as much as 4.4%, reaching a new intraday high.