U.S. artificial intelligence giants OpenAI and Nvidia finalized a $100 billion partnership this week. The deal, known as OpenAI Nvidia partnership, will accelerate AI infrastructure and supercomputing projects. Additionally, the agreement links Nvidia’s cutting-edge processors with OpenAI’s generative AI research and applications.
OpenAI CEO Sam Altman and Nvidia CEO Jensen Huang negotiated the pact through virtual meetings and one-on-one sessions in multiple U.S. cities. Furthermore, both leaders managed late-night calls and last-minute contract adjustments to secure the deal. The partnership allows Nvidia to invest $10 billion at a time in OpenAI as new data centers come online. Consequently, both companies aim to build the next wave of AI supercomputing facilities together.
Altman said OpenAI will focus on three priorities: conducting top-tier AI research, developing products users want, and managing unprecedented infrastructure challenges. Meanwhile, Nvidia provides the high-powered GPUs that underpin OpenAI’s AI models. In addition, the companies plan to scale AI operations under a larger initiative called Stargate, which includes multiple global partners and infrastructure projects.
Microsoft, OpenAI’s principal shareholder and cloud provider, learned about the deal only a day before signing. OpenAI must balance relationships with other partners, including Oracle and SoftBank, which support its AI infrastructure projects. Furthermore, OpenAI has reviewed hundreds of potential sites across North America for the new data centers, evaluating energy access, financing, and permits.
The OpenAI Nvidia partnership is not exclusive, allowing OpenAI to continue working with cloud providers and other chipmakers. Moreover, executives emphasized that the financing structure avoids heavy dilution and includes multiple $10 billion tranches tied to company valuations. This strategy ensures sustainable growth while maintaining control over AI infrastructure expansion.
The collaboration between OpenAI and Nvidia has deep roots. Huang delivered Nvidia’s first DGX supercomputer to OpenAI when it was a small research lab, years before ChatGPT’s launch. Consequently, the companies have grown together as leaders in AI research, development, and hardware deployment. Their combined influence now shapes the future of global AI infrastructure.
In addition, OpenAI plans to lease Nvidia chips while exploring other financing methods, including debt, to fund its 10-gigawatt expansion. The company may also eventually offer commercial cloud services, moving closer to first-party cloud operations similar to Amazon Web Services. Meanwhile, the Stargate initiative coordinates all major OpenAI infrastructure projects, ensuring alignment across partners and investments.
For more business updates, visit DC Brief.
