Nvidia's $100B Chip Investment Boosts OpenAI's AI Race
Nvidia plans to invest up to $100 billion in OpenAI, supplying data center chips for AI development. The deal involves cash payments by OpenAI and non-controlling share investments by Nvidia. The collaboration, enhancing AI infrastructure with Nvidia's technology, could spark antitrust scrutiny amid Nvidia's increasing influence in AI.
Nvidia has announced a groundbreaking investment, committing up to $100 billion in OpenAI to bolster artificial intelligence capabilities. This collaboration will see Nvidia supply data center chips, pivotal for AI infrastructure, starting in late 2026.
The agreement involves OpenAI paying in cash for the chips, while Nvidia secures non-controlling shares. Nvidia's initial $10 billion investment is contingent on a definitive agreement for chip procurement. This venture aligns with ongoing AI partnerships, including Nvidia's recent collaborations with Intel and long-standing ties with Microsoft.
Despite the potential for AI innovation, Nvidia's substantial investment in OpenAI could trigger antitrust investigations, especially in an environment where competition regulation is evolving. Shares of Nvidia and Oracle have seen a positive uptick following the announcement, signaling strong market confidence in the partnership's prospects.
(With inputs from agencies.)
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