Nvidia and OpenAI signed a $100B deal to build data centers and buy OpenAI equity

Nvidia and OpenAI signed a $100 billion agreement on Monday that sounds more like a handshake tailored for algo-driven markets than an actual business ￰0￱ setup is that Nvidia will sell chips to OpenAI for giant data ￰1￱ return, it’ll spend $100 billion buying OpenAI’s unlisted stock over time, far more than the $72 billion OpenAI has raised in its ten-year ￰2￱ companies claim this move will help accelerate AI development, but the scale of the deal and the way it was announced made it feel more like financial performance art than a genuine ￰3￱ paper, this arrangement locks Nvidia into supplying chips for AI models like OpenAI’s GPT-5, which are set to run on a new wave of ￰4￱ then comes the odd part; Nvidia doesn’t need to do ￰5￱ company is already the top supplier of advanced AI chips, and its closest competitors are still struggling to catch ￰6￱ OpenAI has been trying to develop its own chips, but for now, it’s still heavily dependent on ￰7￱ invests $100B and builds 10GW data centers for OpenAI The deal includes the construction of data centers powered by Nvidia chips with a minimum capacity of 10 ￰8￱ aren’t just for testing.

They’ll train and deploy real AI ￰9￱ while Nvidia will provide the hardware, it’s also going to be an investor, piling in $100 billion over time to increase its existing stake in ￰10￱ equity-based structure means OpenAI won’t owe anything ￰11￱ the value drops, or chip orders don’t follow through, Nvidia absorbs the ￰12￱ Huang, CEO of Nvidia, isn’t betting the ￰13￱ about $100 billion in yearly free cash flow and a $4.5 trillion valuation, he can take a ￰14￱ the real question is why do it at all? Monday’s announcement bumped Nvidia’s market cap by $180 ￰15￱ a bad day in the markets, but a small gain for a company that ￰16￱ Altman’s side of the story is ￰17￱ is expected to generate $12 billion in revenue this year, but it can’t cover the massive capital expenses needed to stay ￰18￱ a company claiming to lead the AI race, raising money in chunks should be easy.

Still, the whole thing reeks of ￰19￱ wants to look unstoppable in the race toward ￰20￱ $500 billion valuation depends on that ￰21￱ data center plans create ￰22￱ Nvidia, being seen as the go-to AI chip supplier forces rivals to panic-buy before it’s too ￰23￱ calms partners as competitors rethink chip strategy Right after the news broke, Nvidia tried to calm the rest of its customer base. “Our investments will not change our focus or impact supply to our other customers,” the company said in a statement. “We will continue to make every customer a top priority, with or without any equity stake.” That statement was clearly aimed at companies like Microsoft, Meta, Amazon, and Alphabet; all of whom Nvidia still heavily depends on for ￰24￱ firms are racing to build AI infrastructure ￰25￱ are developing their own chips to reduce reliance on Nvidia, but they’re still buying from Jensen’s team in the meantime.

Now, those same companies are watching the OpenAI–Nvidia relationship ￰26￱ Nvidia is seen as giving OpenAI special access, competitors may push harder to go ￰27￱ fear of falling down the priority list could push them to speed up internal chip development or look more seriously at Nvidia alternatives like ￰28￱ crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites