Openai and Nvidia have signed an intent for a $100 million partnership that can restructure how AI systems are trained and deployed. The plan will support Openai’s next-generation AI infrastructure, seeking at least 10 gigawatts of Nvidia hardware. This is to train and implement future models targeting urgency.
To support the rollout, Nvidia plans to invest up to $100 billion in Openai as the system is deployed. The first phase is expected to be released in the second half of 2026 with Nvidia’s upcoming Vera Rubin platform.
Transactions with a wide range of meanings
The deal shows how closely the biggest AI players are. Nvidia, the leading supplier of AI chips, will acquire the financial interests of one of its biggest customers, Openai. In the case of Openai, this transaction brings both Nvidia’s sought-after processor financing and guaranteed access.
This move can make your rivals feel uneasy. Some may strengthen Nvidia’s advantage in chips, enhance Openai’s lead in AI software, and raise questions about fair competition.
Those familiar with the issue said the partnership includes two linked steps. Nvidia buys non-voting stocks at Openai, and Openai uses the money to buy Nvidia chips.
Why Openai Compute drives AI growth
“It all starts with calculations,” Openai CEO Sam Altman said in a statement. “Computing infrastructure will be the foundation of the economy of the future and leverage what we are building at NVIDIA to create new AI breakthroughs and enhance people and businesses on a large scale.”
The company said details of the partnership will be resolved in the coming weeks. They also said that a 10 gigawatt chip would consume as much electricity as US households of over 8 million.
Nvidia’s shares rose 4.4% to record highs after news. Oracle, which works with Openai, Softbank and Microsoft on a $500 billion global AI data center project called Stargate, rose by around 6%.
How the transaction is structured
According to those familiar with the consultation, once a final agreement is reached, Openai officially purchases the NVIDIA system. Nvidia will invest its first $10 billion in Openai. This was last valued at $500 billion.
The first distribution of Nvidia hardware is expected in the second half of 2026, with 1 gigawatt of computing power coming online on the Vera Rubin platform later that year.
Analysts welcomed the deal but raised concerns about whether some of Nvidia’s investments could be returned to it through Openai’s chip purchases.
“On the one hand, this will help Openai realize what is a very enthusiastic goal of infrastructure calculations and ensure that such things are built. On the other hand, ‘circulating’ concerns have been raised in the past.
Openai’s other AI chip ambitions
Openai, like Google and Amazon, are researching their own custom chips to reduce costs and reduce their reliance on Nvidia. A person close to the company said the deal would not change existing calculation plans, including collaboration with Microsoft.
Early this year, Reuters Openai reported that it was working with Broadcom and Taiwan Semiconductor Manufacturing Co. to design the chip. Following news of the NVIDIA partnership, Broadcom shares fell 0.8%.
Openai has grown to over 700 million active users per week, recruited by businesses of all sizes and developers around the world. The NVIDIA partnership is expected to help the company drive its goal of building artificial general information.
Industry background
The Openai-nvidia agreement will be added to the list of alliances among the tech giants. Microsoft has invested billions in Openai since 2019. Nvidia recently announced a chip collaboration with Intel, pledging $5 billion in funding. Nvidia also participated in Openai’s $6.6 billion round in October 2024.
The scale of the New Deal can attract antitrust attention. Last year, the Department of Justice and the Federal Trade Commission reached an agreement to allow a more detailed scrutiny of the roles of Microsoft, Openai and Nvidia in the AI sector. So far, the Trump administration has taken a lighter approach than the Biden administration on competition issues.
Openai and Microsoft also said earlier this month they signed a non-binding agreement to restructure Openai into a for-profit enterprise, informing them of further governance changes.
Andre Barlow, an anti-trust lawyer for Doyle, Barlow & Mazard, said the Nvidia deal could strengthen the position of both companies in ways that restrict rivals.
“This deal could change the economic incentives of Nvidia and Openai because it could potentially lock Nvidia’s chip Monopoly using Openai software leads. It could make it more difficult for Nvidia competitors, such as Chips’ AMD and Openai’s competitors to expand on the model,” says Barlow.
He added that the Trump administration has previously taken a pro-business approach to regulation, removing barriers that could slow AI growth.
(Image by Nvidia)
See also: Thinking Machine Becomes Openai’s first service partner with APAC
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