Nvidia and OpenAI Forge Strategic Partnership for Massive AI Compute
Key Points
- Nvidia and OpenAI sign a strategic partnership focused on AI compute and investment.
- The deal includes deployment of at least 10 gigawatts of AI datacenters using Nvidia hardware.
- Nvidia plans to invest up to $100 billion in OpenAI as each gigawatt is installed.
- Nvidia becomes the preferred strategic compute and networking partner for OpenAI’s AI factory.
- OpenAI moves beyond exclusive reliance on Microsoft, also partnering with Oracle for cloud services.
- The partnership aims to support OpenAI’s rapid user growth and development of next‑generation AI models.
Nvidia and OpenAI announced a strategic partnership that will supply OpenAI with extensive compute resources and a substantial financial commitment. The deal envisions the deployment of at least 10 gigawatts of AI datacenters powered by Nvidia systems, translating to millions of GPUs for OpenAI’s next‑generation models. Nvidia also intends to invest up to $100 billion in OpenAI as each gigawatt is installed. The collaboration positions Nvidia as the preferred compute and networking partner for OpenAI’s AI factory, while marking a shift from OpenAI’s previous reliance on Microsoft as its sole compute provider.
Partnership Overview
Nvidia and OpenAI have entered a strategic partnership aimed at expanding OpenAI’s AI compute capacity and providing significant financial backing. Under the agreement, OpenAI will build and operate a minimum of ten gigawatts of AI datacenters equipped with Nvidia hardware, a scale that translates into millions of graphics processing units (GPUs) dedicated to training and deploying new AI models.
Nvidia will serve as the preferred strategic compute and networking partner for OpenAI’s AI factory growth plans. This designation signals that Nvidia’s technology will be the primary infrastructure foundation for OpenAI’s upcoming AI initiatives.
Financial Commitment
As part of the deal, Nvidia intends to invest up to one hundred billion dollars in OpenAI, with the investment progressing as each gigawatt of compute is deployed. The sizable financial commitment underscores Nvidia’s confidence in OpenAI’s roadmap and the broader AI market.
OpenAI’s CEO highlighted the centrality of compute, noting that the infrastructure will underpin the future AI‑driven economy. The partnership follows OpenAI’s recent diversification of compute sources, moving beyond its earlier reliance on Microsoft, which previously held an exclusive compute relationship.
Strategic Implications
The alliance marks a notable shift in OpenAI’s compute strategy. Earlier this year, OpenAI announced that Microsoft would no longer be its sole compute provider, transitioning to a “right of first refusal” arrangement. OpenAI has since begun building its own data centers and entered a cloud computing deal with Oracle, signaling a broader multi‑vendor approach.
Microsoft, which has invested over thirteen billion dollars in OpenAI, has experienced tensions with the AI startup over contractual clauses related to artificial general intelligence (AGI). The new partnership with Nvidia may further diversify OpenAI’s compute ecosystem and reduce reliance on any single cloud provider.
OpenAI’s rapid user growth—reaching 700 million weekly active users for ChatGPT—drives the need for expanded compute capacity. The partnership with Nvidia is poised to accelerate OpenAI’s development of more advanced models, potentially shaping the next wave of AI applications across businesses and consumer platforms.