Nvidia Invests $100 Billion in OpenAI in Exchange for a Stake in the Company

Nvidia has committed to investing an initial $10 billion (CZK 243 billion) in OpenAI at the startup's recent valuation of $500 billion (CZK 12.15 trillion). The remaining investment from the total planned $100 billion (CZK 2.43 trillion) will be made gradually at future valuations. The investment will be made in cash, and Nvidia will receive a stake in OpenAI in return. Based on the valuation from a recent employee share sale, Nvidia would receive about 2 percent of the company for the initial $10 billion.

Joint Agreement

The two companies announced that Nvidia will provide $100 billion to support 10 gigawatts of data center capacity for OpenAI. The investment will be made gradually as each gigawatt comes online. This approach will limit the dilution of other OpenAI investors' stakes if the company's valuation rises. The first gigawatt of Nvidia systems is expected to be deployed in the second half of 2026 using the Nvidia Vera Rubin platform. The partnership includes the joint optimization of OpenAI's model software with Nvidia's hardware and software, strengthening Nvidia's position as the preferred partner for the growth of OpenAI's AI infrastructure.

OpenAI's Financial Needs

By the end of this year, OpenAI will have raised more than $70 billion (CZK 1.701 trillion) since its founding, including an investment from Nvidia last fall, when OpenAI was valued at $157 billion (CZK 3.815 trillion). OpenAI needs these funds to cover the enormous costs associated with training and operating its models, which the company estimates will reach at least $450 billion (CZK 10.935 trillion) by 2030. OpenAI is currently undergoing a restructuring that could pave the way for a future stock market listing.

OpenAI is building massive data centers with millions of GPUs and, with more than 700 million weekly active users, is strengthening its position in the race for advanced AI.

Source: theinformation.com