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Nvidia has reached an agreement to invest as much as US$100 billion in OpenAI to support new data centres and other artificial intelligence infrastructure, a blockbuster deal that underscores the booming demand for AI tools like ChatGPT and the computing power needed to run them.
The companies announced the agreement on Monday, saying they had signed a letter of intent for a strategic deal.
The investment aims to help OpenAI build data centres with a capacity of at least 10 gigawatts of power. They would be equipped with Nvidia’s advanced chips to train and deploy AI models.
The money would be provided in stages, with the first US$10 billion coming when the deal is signed, sources said. Nvidia is making the investment in cash and would receive OpenAI equity as part of the deal, sources added.
Further increments would follow when each gigawatt of computing power is deployed.
Investors applauded the tie-up, sending Nvidia shares up 3.9 per cent in New York trading. The stock has gained 37 per cent this year, cementing the company’s status as the most valuable business on Earth.
