According to Reuters, Nvidia will invest up to $100 billion into OpenAI, combining financial backing with guaranteed supply of Nvidia’s next-generation data center chips. The deal involves two intertwined parts: Nvidia purchasing non-voting shares of OpenAI and OpenAI committing to buy Nvidia’s hardware systems as part of their compute infrastructure roadmap.

Under the partnership, the companies plan to deploy at least 10 gigawatts of Nvidia systems to power OpenAI’s compute needs. Analysts warn such an arrangement may draw antitrust scrutiny, as it blurs the lines between customer and investor roles.

The announcement comes at a time when compute demand is skyrocketing—Nvidia asserts that the deal will help OpenAI scale future models while anchoring Nvidia’s dominance in the AI hardware market.

Key Highlights

• Nvidia will invest up to $100 billion in OpenAI.

• The partnership includes Nvidia supplying high-end data center chips to OpenAI.

• At least 10 GW of compute capacity is planned to be deployed under the deal.

• The move may attract antitrust scrutiny due to overlapping interests.

Why This Matters

1. Hardware-Software Synergy: This kind of deep integration helps align incentives for both parties—OpenAI gets compute security, and Nvidia ensures continued demand.

2. Compute Arms Race: It reinforces that compute infrastructure is a core battleground in AI competition, not just algorithms.

3. Market & Regulatory Implications: A deal of this scale between two giants draws close attention from regulators worried about concentration and fairness.

4. Long-Term Lock-In: With such commitments, it becomes harder for competitors to break into the pipeline at scale, creating potential barriers to entry.

Source
Reuters – Full Article