Nvidia & OpenAI Ink $300B-$500B Deal for AI Supercomputing
Nvidia and OpenAI have inked a significant deal, with Nvidia set to provide at least 10 gigawatts of systems to OpenAI, starting in late 2026 with the Vera Rubin project. This partnership, valued at potentially $300 billion to $500 billion, will see Nvidia's graphical processing units (GPUs) power OpenAI's AI models efficiently.
OpenAI, backed by investors like Microsoft, is burning cash to develop advanced AI models. To support this, it has secured a $10 billion initial investment from Nvidia, with more funds to follow. This will enable OpenAI to deploy its first gigawatt of capacity soon.
OpenAI CFO Sarah Friar confirmed that Oracle and Nvidia are key players in OpenAI's financing and infrastructure. Oracle is leasing its Abilene data center to OpenAI for its operations. OpenAI, in turn, will pay Nvidia for the GPUs through lease arrangements, not upfront purchases. This deal ensures OpenAI can meet rising demand for its AI services without significant upfront costs.
The Nvidia-OpenAI partnership is set to revolutionize AI capabilities, with Nvidia's GPUs powering OpenAI's models. This deal, valued at up to $500 billion, is expected to generate substantial sales for Nvidia over time. Meanwhile, OpenAI can focus on developing cutting-edge AI, backed by the financial and technological support of its partners.
