• Nvidia plans to invest up to $100 billion in OpenAI to develop AI data centers.
• The partnership will deploy at least 10 gigawatts of computing power.
• Initial investment of $10 billion to support chip purchases, marking a circular investment structure.
• The first data center is set to launch in the second half of 2026.
• Concerns raised about potential antitrust scrutiny and the implications of circular financing.

Nvidia has announced plans to invest up to $100 billion in OpenAI, solidifying a strategic partnership aimed at developing advanced AI data centers. This collaboration will involve deploying at least 10 gigawatts of Nvidia's computing power, vital for training and running AI models, thus reinforcing the companies’ positions in the burgeoning technology landscape, according to Reuters, Business Insider, and India Times.

As per the arrangement, Nvidia will begin its investment with an initial $10 billion once the deal is finalized, which will enable OpenAI to purchase Nvidia chips and systems, ensuring ongoing revenue for the chipmaker while providing necessary resources for OpenAI’s AI development needs. The first deployment of computing power is targeted for the second half of 2026, signaling a major shift in AI infrastructure, reports BBC and Los Angeles Times.

OpenAI's CEO Sam Altman emphasized the significance of the compute infrastructure, stating, “Everything starts with compute. Compute infrastructure will be the basis for the economy of the future." The new partnership aims to leverage Nvidia's advanced chips, making them integral to AI breakthroughs at a greater scale than before, according to Al Jazeera and Bloomberg.

The deal has raised concerns regarding potential antitrust implications due to its “circular investment” nature, where investment from Nvidia may effectively return as purchases of its chips by OpenAI, possibly impacting market competition. Discussions among analysts indicate that this arrangement could lead to regulatory scrutiny, highlighting ongoing tensions in the AI market, mention India Times and The Jakarta Post.