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OpenAI is the parent company of the generative AI chatbot ChatGPT. Although it has reached a strategic cooperation agreement with Nvidia, OpenAI will continue to advance its ongoing computing initiatives.
U.S. chip giant Nvidia announced it will invest up to $100 billion (about S$128.2 billion) in AI firm OpenAI, with the two parties jointly building large-scale data centers.
According to Reuters, a person familiar with the matter said that under the cooperation agreement, Nvidia will begin delivering chips to OpenAI as early as the end of 2026. The deal involves two separate but linked transactions.
The insider said OpenAI will purchase chips from Nvidia in cash, while Nvidia will acquire a non-controlling stake in OpenAI through its investment.
OpenAI CEO Sam Altman said in a statement: “It all starts with computing power. Computing infrastructure will be the foundation of the future economy. We will use the system we build with Nvidia to both push AI toward new breakthroughs and empower individuals and enterprises at scale.”
The two sides have signed a letter of intent to deploy at least 10 gigawatts of Nvidia systems for OpenAI, with the details to be finalized in the coming weeks. The power consumption of these chips is equivalent to the electricity needs of more than 800,000 U.S. households.
Sources said that once the final agreement on OpenAI’s purchase of Nvidia systems is reached, Nvidia will inject $10 billion upfront. OpenAI’s latest valuation stands at $500 billion.
OpenAI is following in the footsteps of companies like Google and Amazon by developing its own AI chips, aiming to create a more cost-effective alternative to Nvidia’s products. Insiders said the cooperation agreement will not change any of OpenAI’s ongoing computing plans, including its chip development project and its partnership with Microsoft. |
