NVIDIA invests $100B in OpenAI, challenging tech giants

Nvidia to Invest $100 Billion in OpenAI. Jensen Huang, the chief executive of Nvidia, said his company would support the largest data center build out in history. The chipmaker’s investment in the San Francisco start-up is an indication of the wild financial figures being tossed around in the world of artificial intelligence. Nvidia, the world’s most valuable publicly traded company, said on Monday that it would invest $100 billion in OpenAI, a deal that will allow the start-up behind ChatGPT to use the chipmaker’s artificial intelligence semiconductors inside its data centers. Nvidia’s investment in OpenAI is part of a wider effort among tech companies to spend hundreds of billions of dollars on A.I. data centers around the world. OpenAI, Amazon, Google, Meta and Microsoft plan to spend more than $325 billion combined on these facilities by the end of the year. Tech industry giants, which pull in tens of billions of dollars in profits yearly, have been able to finance much of this construction with the money they have in the bank. But as newer, smaller companies like OpenAI have built facilities, they have been forced to raise or borrow tens of billions of dollars. This has led many experts to worry that if A.I. technologies are not adopted as quickly as these companies believe they will be, that aggressive spending could put companies in a precarious situation. Many could find themselves shouldering big debts without having sufficient sales to cover their costs. https://lnkd.in/eRpyFwtg

Nvidia will invest $100 billion in OpenAI to expand the computing power for the AI company that owns ChatGPT. This investment involves adding at least 10 gigawatts of Nvidia AI data centers, with the first gigawatt expected to be deployed in the second half of 2026. The partnership details are still being finalized, and this collaboration expands on previous investments by companies like Microsoft, Oracle, SoftBank, and Stargate, who pledged $100 billion for OpenAI data centers earlier this year. OpenAI recently reached a tentative agreement granting Microsoft a $100 billion equity stake in its for-profit entity, which remains controlled by its nonprofit parent organization. OpenAI CEO Sam Altman emphasized the importance of building infrastructure to deliver better AI services, noting that both Nvidia and Microsoft are passive investors with the nonprofit board retaining control. OpenAI's corporate structure and nonprofit mission face legal challenges, including a lawsuit from co-founder Elon Musk alleging a betrayal of its mission to develop AI for humanity's benefit. The company has also come under scrutiny from the attorneys general of California and Delaware, who expressed serious safety concerns about ChatGPT, particularly for children and teens, following reports of harmful interactions and a tragic suicide linked to prolonged chatbot use. The parents of the 16-year-old boy who died filed a lawsuit against OpenAI and Altman. OpenAI currently reports 700 million weekly active users. Separately, Nvidia announced a $5 billion investment in chipmaker Intel to help the latter keep pace with AI demand. #AI #Japan https://lnkd.in/gPe-vYRR

😲 Nvidia to invest $100 billion in OpenAI to help expand the ChatGPT maker's computing power 😲 🔹 Chipmaker Nvidia will invest $100 billion in #OpenAI as part of a partnership announced Monday that will add at least 10 gigawatts of Nvidia #AI data centers to ramp up the computing power for the owner of the artificial intelligence #chatbot #ChatGPT "This partnership complements the deep work OpenAI and Nvidia are already doing with a broad network of collaborators, including Microsoft, Oracle, SoftBank and Stargate partners, focused on building the world's most advanced AI infrastructure," 🔹 Those companies pledged to invest at least $100 billion in building data centers for OpenAI in January 🔹 The #Nvidia-#OpenAI partnership also comes about 10 days after OpenAI said it had reached a new tentative agreement that will give Microsoft a $100 billion equity stake in its for-profit corporation 🔹 OpenAI says it has 700 million weekly active users. https://lnkd.in/grFuEFJK

🚨 NVIDIA just dropped $100 BILLION on OpenAI. This isn't just another tech deal—it's a signal that the AI infrastructure war has officially begun. While most people are debating whether AI will replace jobs, the smartest companies are making moves that will define the next decade: 💰 Oracle: $300 billion OpenAI computing deal 💰 Meta: Hundreds of billions in AI data centers 💰 Google: Massive infrastructure investments 💰 SoftBank: Leading the $500 billion Stargate project Here's what this really means: 1️⃣ AI isn't a trend anymore—it's infrastructure. Just like electricity and the internet before it, AI is becoming the foundation that everything else is built on. 2️⃣ The barrier to entry is getting higher. These billion-dollar investments aren't just about technology—they're about creating competitive moats that smaller players can't cross. 3️⃣ Your industry is next. If you think AI won't impact your field, you're not paying attention to where the money is flowing. The companies making these investments aren't gambling. They're positioning themselves to control the infrastructure that will power every business in the future. The question isn't whether AI will transform your industry. The question is: Will you be ready when it does? What's your company doing to prepare for this AI infrastructure revolution?

Nvidia to invest up to $100 billion in OpenAI, as #AI buildout is estimated to consume as much electricity as 8 million homes. https://lnkd.in/dbp-5Dff

NVIDIA will invest up to US$100 billion in OpenAI and supply it with data centre chips, the companies said on Monday, marking a tie-up between two of the highest-profile players in the global artificial intelligence race. #AI #artificialintelligence #DataCentres

Nvidia plans to invest up to $100B in OpenAI: OpenAI and Nvidia agreed to deploy 10 gigawatts worth AI chips to power the next generation of ChatGPT. https://lnkd.in/g4sB_EcM

Nvidia plans to invest up to $100B in OpenAI OpenAI and Nvidia agreed to deploy 10 gigawatts worth AI chips to power the next generation of ChatGPT. https://lnkd.in/g_haCcBX

Nvidia's potential $100B investment in OpenAI signals a bold leap for AI innovation! 🚀 Powering the next-gen ChatGPT with 10GW of AI chips could reshape tech as we know it. How might this alliance influence the future of AI products? (via TechCrunch) #AI #Innovation #AdvertisingGoals #SudoXResults #MarketingInsights #DigitalMarketing #BusinessMarketing #Conversions #BusinessGrowth #WebsiteTraffic #CustomerFeedback #CostEffectiveStrategy #BrandAwareness #CommunityEngagement #OnlinePresence #BrandElevation #TargetAudience

OpenAI's spending spree is powering the tech industry. Oracle is the latest winner https://lnkd.in/d2TsXe3E Quotes from the article: Oracle’s historic stock surge this week marked the latest chapter in the story of a single private company that’s dominated the tech landscape for almost three years: OpenAI. In Oracle’s blowout earnings report, OpenAI was a key catalyst due to a massive amount of money the artificial intelligence startup expects to spend on cloud computing technology in the coming years. It’s becoming a familiar theme. A week earlier, Broadcom shares popped almost 10% after the chipmaker and software vendor said it forged a $10 billion deal to build custom processors for a customer that analysts said was OpenAI. Among tech’s megacaps, Microsoft has the closest link to OpenAI, having invested more than $13 billion in the company and serving as its key cloud partner for six years. Nvidia’s march to becoming the world’s most valuable company is intimately tied to OpenAI, as its graphics processing units (GPUs) sit at the heart of large language model development and are essential for running big AI workloads. Those four companies alone — Oracle, Broadcom, Microsoft and Nvidia — have seen their combined market caps swell by over $4.5 trillion since OpenAI burst into public view with the launch of ChatGPT in late 2022. And those gains are a big reason why the Nasdaq and S&P 500 have sustained sharp rallies, with both benchmarks closing at a record on Friday. OpenAI’s outsized influence has some market experts understandably concerned. It remains a cash-burning startup that’s governed by a nonprofit parent. The company’s $500 billion valuation is supported by a small number of investors betting that OpenAI will prevail in the face of hefty competition from the likes of Meta and Google as well as other highly-valued newcomers like Anthropic and any number of players out of China. “While we love ChatGPT, OpenAI is still a not for profit limited in its ability to raise capital,” said Gil Luria, an analyst at D.A. Davidson, in an interview with CNBC. Luria, who recommends holding Oracle shares, dug into the company’s numbers as the stock was in the midst of a 36% jump on Wednesday, its biggest gain since 1992. In its quarterly earnings report late Tuesday, Oracle said it signed four multibillion-dollar contracts with three different customers during the period. One of those was with OpenAI, which said previously that it agreed to develop 4.5 gigawatts of U.S. data center capacity with Oracle. Investors knew, based on a filing with the SEC in June, that Oracle signed a $30 billion cloud contract with an unnamed company that’s set to begin in two years. CNBC confirmed a Wall Street Journal report from Wednesday that OpenAI has agreed to spend $300 billion in computing power over about five years, starting in 2027. #artificialintelligence #ai #chatgpt #GPUs #nvidia #oracle #broadcom #microsoft #openai #AIbubble #AIhypemachine