Nvidia and OpenAI Announce $100B Partnership to Revolutionize AI Infrastructure, Raise Antitrust Concerns

Tech behemoths OpenAI and Nvidia have announced a potential $100 billion partnership aimed at revolutionizing the way artificial intelligence (AI) systems are developed and deployed. Under the terms of the agreement, Nvidia will provide OpenAI with at least 10 gigawatts of its advanced hardware to support the creation of next-generation AI infrastructure, capable of superintelligence.

Nvidia plans to invest up to $100 billion in OpenAI as these systems are implemented, with the initial phase set to launch in the second half of 2026, powered by Nvidia’s upcoming Vera Rubin platform. The partnership underscores the growing interdependence between major AI players, with Nvidia, a leading supplier of AI processors, gaining a financial stake in one of its key clients, OpenAI, which stands to benefit from guaranteed access to Nvidia’s cutting-edge technology.

The alliance could spark concerns among rivals about the strengthening position of Nvidia and OpenAI in their respective markets, potentially leading to questions regarding fair competition. According to sources familiar with the matter, the partnership consists of two phases: Nvidia will acquire non-voting shares in OpenAI, which will then use those funds to procure Nvidia chips.

“The foundation for the future economy lies in compute infrastructure,” stated Sam Altman, CEO of OpenAI. “We will leverage our collaboration with Nvidia not only to achieve groundbreaking AI advancements but also to make these technologies accessible at scale.”

Further details of the partnership are expected to be finalized in the coming weeks. It’s worth noting that 10 gigawatts of chips would consume as much power as more than 8 million US households.

Upon announcement, Nvidia’s stock surged by up to 4.4% to a new record high, while Oracle, collaborating with OpenAI, SoftBank, and Microsoft on the $500 billion global AI data center project called Stargate, experienced a rise of approximately 6%.

Once finalized, OpenAI will purchase Nvidia systems, with an initial investment of $10 billion from Nvidia in OpenAI, which was last valued at $500 billion. The first delivery of Nvidia hardware is anticipated in late 2026, with one gigawatt of computing power becoming available in the second half of that year on the Vera Rubin platform.

While analysts generally support the agreement, concerns have been raised about potential returns flowing back to Nvidia through OpenAI’s chip purchases. Stacy Rasgon, an analyst at Bernstein, commented, “This collaboration will enable OpenAI to achieve its ambitious goals for compute infrastructure, while ensuring that Nvidia’s technology gets employed. However, the ‘circular’ nature of the investment has been a topic of discussion in the past, and this will likely stoke those concerns further.”

OpenAI, like Google and Amazon, has been investigating custom chips to reduce costs and lessen reliance on Nvidia. A source close to the company stated that this partnership does not affect OpenAI’s existing compute strategies, including its collaboration with Microsoft.

Earlier this year, Reuters reported that OpenAI was collaborating with Broadcom and Taiwan Semiconductor Manufacturing Co. to design chips. Following news of the Nvidia partnership, Broadcom shares dipped by 0.8%.

OpenAI currently boasts over 700 million weekly active users, with adoption spanning businesses of all sizes and developers worldwide. The collaboration with Nvidia is expected to propel OpenAI towards its goal of developing artificial general intelligence.

The OpenAI-Nvidia partnership adds to a growing list of alliances among tech titans. Microsoft has invested billions in OpenAI since 2019, while Nvidia recently announced a chip collaboration with Intel and pledged $5 billion in funding. Nvidia also participated in OpenAI’s $6.6 billion round in October 2024.

Given the size of the deal, it may attract antitrust scrutiny. Last year, the Justice Department and Federal Trade Commission reached an agreement to intensify oversight of Microsoft, OpenAI, and Nvidia’s roles in the AI sector. The Trump administration has so far taken a more lenient approach towards competition issues compared to the Biden administration.

OpenAI and Microsoft also announced earlier this month that they had signed a non-binding agreement to transform OpenAI into a for-profit company, signaling further governance changes.

Antitrust lawyer Andre Barlow from Doyle, Barlow & Mazard stated, “The deal could strengthen the positions of both companies in ways that may limit their competitors. The potential arrangement could lock in Nvidia’s chip monopoly with OpenAI’s software lead and make it more challenging for rivals like AMD in chips or OpenAI’s competitors in models to scale.”

He added, “The Trump administration has thus far adopted a pro-business stance towards regulation, easing barriers that could impede AI growth.”