Nvidia to invest $100 billion in OpenAI as they deploy 10 gigawatts of Nvidia AI

OpenAI plans to scale its power use to insane levels with 10 gigawatts of Nvidia AI hardware

Nvidia and OpenAI have announced a new “strategic partnership” that may lead to the construction of the world’s largest “AI factory”. This partnership will allow OpenAI to build and deploy “at least 10 gigawatts of AI datacenters”, with Nvidia investing “up to $100 billion” into OpenAI “progressively as each gigawatt is deployed”.

This announcement comes one week after Nvidia invested $5 billion in Intel as part of a new hardware partnership. Their deal with OpenAI ensures that OpenAI’s infrastructure is powered by Nvidia hardware, with the first Gigawatt of Nvidia systems going live next year using Nvidia’s Rubin platform. These systems are expected to go live in the second half of 2026.

With these new systems, OpenAI will consume more power than many advanced nations. In 2023, the UK’s average electricity consumption was 29.6 GW. That means that OpenAI alone plans to use one-third of the UK’s entire grid just to power its AI factories. Powering these systems alone is a massive undertaking, never mind building the systems and acquiring AI hardware.

Nvidia’s partnership with OpenAI ensures that its AI products are at the centre of OpenAI’s infrastructure. It also ensures that Nvidia hardware is the default choice when powering OpenAI’s AI products. Furthermore, much of Nvidia’s investments will be reinvested in the company through hardware sales.

Simply put, Nvidia’s investment in OpenAI is a mutually beneficial arrangement. Nvidia hardware will sit at the core of one of the world’s leading AI companies, and the hype surrounding the deal will help push further investment into AI hardware. A strong OpenAI is good for Nvidia. Furthermore, OpenAI’s reliance on Nvidia hardware is also beneficial for Nvidia.

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