Chipmaker Nvidia is set to make a massive investment in leading AI company OpenAI. Nvidia will invest $100 billion (around ₹8,815 billion) in OpenAI to build new data centers and other artificial intelligence infrastructure. With the rising demand for AI, both companies have decided to move forward with this strategic partnership.

OpenAI and Nvidia announced the agreement on Monday, confirming that they have already signed a letter for the deal. The investment aims to help OpenAI set up data centers with at least 10 gigawatts of capacity, with Nvidia providing the necessary support.

How Will Nvidia Invest?

These data centers will be equipped with Nvidia’s advanced chips, which will be used to train and deploy AI models. Nvidia will provide the funds in different phases. Reports suggest the company will release the first $10 billion immediately after signing the deal.

According to a source, Nvidia will make this investment in cash and, in return, receive equity in OpenAI. The remaining funds will be provided as each gigawatt of computing power comes online. Following the announcement, Nvidia’s shares surged 3.9% in the stock market.

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What Will This Partnership Create?

Both companies will work together to build massive data centers that will support the next generation of AI tools. The project will require advanced chips, servers, cooling systems, and an enormous amount of electricity.

Running a 10-gigawatt data center will consume as much electricity as the entire city of New York.

Nvidia CEO Jensen Huang said, “This investment and infrastructure partnership marks the next step, where a 10-gigawatt data center will power the next era of intelligence.”