Nvidia to Invest $100 Billion in OpenAI for Data Centers

On September 22, 2025, Nvidia and OpenAI unveiled a landmark strategic partnership, with Nvidia committing to invest up to $100 billion in OpenAI as the two companies collaborate to build and deploy at least 10 gigawatts of AI data centers. The announcement, made jointly from San Francisco and Santa Clara, signals one of the largest investments in AI infrastructure to date, aimed at supporting OpenAI’s next generation of artificial intelligence models and the broader pursuit of artificial general intelligence.

The Scale and Structure of the Deal

According to the companies, Nvidia’s investment will be made progressively, tied to the deployment of each gigawatt of data center capacity. The first phase, involving the deployment of Nvidia’s Vera Rubin platform, is scheduled to come online in the second half of 2026. Industry analysts, including those featured on Bloomberg Businessweek, note that the cost of building a single gigawatt of AI data center capacity can reach up to $25 billion, making the total project cost potentially $250 billion, with Nvidia’s share capped at $100 billion. The investment is not a lump sum but will be released in tranches as each gigawatt milestone is achieved, and it remains unclear how much of the investment will be in cash versus in-kind contributions such as Nvidia GPUs and systems.

Strategic Implications and Industry Context

The partnership cements Nvidia’s role as a critical supplier and strategic investor in the rapidly expanding AI sector. OpenAI, which has grown to over 700 million weekly active users, relies heavily on external partners for compute resources, lacking the balance sheet to fund such massive infrastructure independently. Nvidia’s move positions it as a bridge, providing both the hardware and the capital needed for OpenAI’s ambitious expansion, while also securing a preferred position for its technology in OpenAI’s future data centers. The deal comes amid intensifying competition among hyperscalers and chipmakers, with Microsoft, Oracle, and SoftBank also deeply involved in AI infrastructure and investment. Notably, OpenAI’s partnerships with Oracle and Microsoft remain in place, but Nvidia’s investment is expected to ensure that its hardware remains central to OpenAI’s model training and deployment.

Questions and Uncertainties

Despite the headline figure, several aspects of the deal remain opaque. Bloomberg analysts point out that the letter of intent does not specify whether Nvidia’s investment will be entirely in cash or partly in hardware, nor does it clarify the equity terms Nvidia may receive in OpenAI. The structure of the deal is designed to guarantee Nvidia a long-term demand pipeline for its GPUs, but the exact financial mechanics and the impact on OpenAI’s ownership structure are yet to be finalized. The partnership also raises questions about the broader AI ecosystem, as OpenAI has indicated it may use chips from other suppliers such as Broadcom, and continues to rely on third-party cloud providers like Oracle for compute capacity.

The announcement comes just days after Nvidia agreed to invest $5 billion in Intel for joint chip development, signaling a broader strategy to entrench itself at the heart of the global AI hardware supply chain. As the AI arms race accelerates, Nvidia’s $100 billion commitment to OpenAI stands as a defining moment, with the potential to reshape the competitive landscape for years to come.