has been in dealmaking mode as of late, and on Monday it announced another big one.
The world’s largest company inked a $100 billion partnership with AI-leader . Nvidia will invest $100 billion in OpenAI to build out its AI infrastructure and deploy at least 10 gigawatts of NVIDIA systems to train and run its next generation models.
The first phase of this initiative is set to come online in the second half of 2026 using the NVIDIA Vera Rubin platform.
“NVIDIA and OpenAI have pushed each other for a decade, from the first DGX supercomputer to the breakthrough of ChatGPT,” Jensen Huang, founder and CEO of NVIDIA, said. “This investment and infrastructure partnership mark the next leap forward — deploying 10 gigawatts to power the next era of intelligence.”
In essence, Nvidia will be OpenAI’s preferred strategic compute and networking partner for its AI growth plans. It complements the work that OpenAI and NVIDIA are already doing for the $500 billion Stargate AI infrastructure project with , , and .
OpenAI, through its Chat GPT platform, is the leader in generative AI with over 700 million weekly active users.
“Everything starts with compute,” Sam Altman, co-founder and CEO of OpenAI, said. “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 Gets Price Target Raises
Nvidia stock rose about 4% on the news Monday, but it opened lower on Tuesday morning down about 1%.
Along with the Stargate partnership, Nvidia also made a $5 billion investment with to develop data center and PC products. In addition, it struck a deal with CoreWeave last week to purchase any excess cloud computing capacity.
Nvidia shares are up 35% year-to-date and is trading at about 52 times earnings and 41 times forward earnings. With these new deals, Nvidia has inserted itself into the center of the AI universe, now more than ever. The stock is expensive, but the growth prospects remain extremely robust.