(Bloomberg) — Nvidia Corp. will invest as much as $100 billion in OpenAI to support building of new data centers and other artificial intelligence infrastructure, a blockbuster deal that underscores booming demand for AI tools like ChatGPT and the computing power to make them run.
The investment is intended to help OpenAI build data centers with a capacity of 10 gigawatts of power using Nvidia’s advanced AI chips to train and deploy OpenAI’s models.
Nvidia will receive equity in OpenAI in the deal, according to people familiar with the arrangement. The investment will be provided in stages with the first $10 billion coming when the first gigawatt of computing power is deployed, the people said, who asked not to be identified because the talks were private.
The companies signed a letter of intent for the strategic deal, they said Monday in a statement.
“Everything starts with compute,” OpenAI Chief Executive Officer Sam Altman said in the statement. “Compute infrastructure will be the basis for the economy of the future, and we will utilize what we’re building with Nvidia to both create new AI breakthroughs and empower people and businesses with them at scale.”
Nvidia has been using its financial might to make sure the company’s gear remains at the heart of the buildout of AI systems. Keeping OpenAI, which is diving into hardware including its own chips, as a major customer may help the chipmaker cement that position as the industry looks at rivals’ components.
OpenAI’s ChatGPT is used by roughly 700 million people weekly and takes an intensive amount of computing power to service and build its products. In the past, the company has faced computing constraints in its ability to meet customer demand, particularly around new releases. On Sunday, Altman posted on social media that his company will be launching some new “compute-intensive” product offerings in the next few weeks.
Nvidia and OpenAI didn’t provide details on its investment in OpenAI or when it will occur. Representatives for Nvidia declined to comment.
In the statement, the companies said they “look forward to finalizing the details of this new phase of strategic partnership in the coming weeks.”
Nvidia share rose as much as 4% in New York trading. That brings its gains to about 36% this year.
(Bloomberg) — Nvidia Corp. will invest as much as $100 billion in OpenAI to support building of new data centers and other artificial intelligence infrastructure, a blockbuster deal that underscores booming demand for AI tools like ChatGPT and the computing power to make them run.
The investment is intended to help OpenAI build data centers with a capacity of 10 gigawatts of power using Nvidia’s advanced AI chips to train and deploy OpenAI’s models.
Nvidia will receive equity in OpenAI in the deal, according to people familiar with the arrangement. The investment will be provided in stages with the first $10 billion coming when the first gigawatt of computing power is deployed, the people said, who asked not to be identified because the talks were private.
The companies signed a letter of intent for the strategic deal, they said Monday in a statement.
“Everything starts with compute,” OpenAI Chief Executive Officer Sam Altman said in the statement. “Compute infrastructure will be the basis for the economy of the future, and we will utilize what we’re building with Nvidia to both create new AI breakthroughs and empower people and businesses with them at scale.”
Nvidia has been using its financial might to make sure the company’s gear remains at the heart of the buildout of AI systems. Keeping OpenAI, which is diving into hardware including its own chips, as a major customer may help the chipmaker cement that position as the industry looks at rivals’ components.
OpenAI’s ChatGPT is used by roughly 700 million people weekly and takes an intensive amount of computing power to service and build its products. In the past, the company has faced computing constraints in its ability to meet customer demand, particularly around new releases. On Sunday, Altman posted on social media that his company will be launching some new “compute-intensive” product offerings in the next few weeks.
Nvidia and OpenAI didn’t provide details on its investment in OpenAI or when it will occur. Representatives for Nvidia declined to comment.
In the statement, the companies said they “look forward to finalizing the details of this new phase of strategic partnership in the coming weeks.”
Nvidia share rose as much as 4% in New York trading. That brings its gains to about 36% this year.
