Nvidia will also supply chips to power OpenAI’s data centers.
Published On 22 Sep 2025
Nvidia, a leading chip manufacturer, is set to invest as much as $100 billion in OpenAI, while also supplying the AI startup with essential chips for its data center operations. This collaboration marks a significant alliance between two frontrunners in the global artificial intelligence arena.
Announced on Monday, the partnership will commence chip deliveries by late 2026 and encompasses two interconnected transactions, according to an insider familiar with OpenAI’s plans.
OpenAI will purchase chips from Nvidia using cash payments, while Nvidia will acquire a minority stake in OpenAI through its investment, the source explained.
The initial tranche of Nvidia’s investment, amounting to $10 billion, will be activated once both parties finalize an agreement for OpenAI’s chip procurement.
Requests for comments from Nvidia regarding the specifics of the deal were not immediately answered. This agreement adds to a series of strategic partnerships in the tech sector, including Microsoft’s longstanding investments in OpenAI and a recent collaboration between Nvidia and Intel focused on AI chip development.
Both companies have signed a letter of intent outlining a strategic alliance to deploy a minimum of 10 gigawatts of Nvidia chips to support OpenAI’s AI infrastructure.
They anticipate concluding the partnership’s finer details within the upcoming weeks, aiming to launch the initial deployment phase in the latter half of 2026.
“At the core of innovation lies computational power,” stated OpenAI CEO Sam Altman.
“The future economy will be built on compute infrastructure, and our collaboration with Nvidia will drive groundbreaking AI advancements while enabling widespread access for individuals and enterprises.”
This announcement follows Nvidia’s recent $5 billion commitment to assist Intel amid its challenges in the chip market.
Earlier this month, OpenAI and its major investor Microsoft revealed a nonbinding agreement outlining new terms that could facilitate OpenAI’s transition into a for-profit entity.
Previously, Nvidia participated in a $6.6 billion funding round for OpenAI in October 2024. However, this substantial new investment by the world’s most valuable company may attract regulatory scrutiny over potential antitrust concerns.
The current US administration under President Donald Trump has adopted a more lenient approach to competition regulation compared to the stricter enforcement seen during President Joe Biden’s tenure.
In June 2024, the US Department of Justice and the Federal Trade Commission reached an understanding that paved the way for possible antitrust investigations into the dominant positions held by Microsoft, OpenAI, and Nvidia within the AI sector.
Following the announcement, Nvidia’s stock price surged, rising over 3.9 percent by 2 pm in New York (18:00 GMT).
