Chipmaker Nvidia (NVDA) has announced plans to invest up to $100 billion U.S. in artificial intelligence (A.I.) start-up OpenAI.
The investment and strategic partnership between the two companies comes as competition heats up among technology firms that are racing to secure the energy and microchips needed for A.I. growth.
Under the arrangement, Nvidia will provide at least 10 gigawatts of its microchips for OpenAI’s A.I. infrastructure.
The two companies said they plan to finalize details of their agreement in coming weeks, with the first deployment of Nvidia microchips expected in the second half of 2026.
Nvidia’s investment in OpenAI comes days after it committed to invest $5 billion U.S. in rival chipmaker Intel (INTC).
The administration of U.S. President Donald Trump has been pressuring Nvidia and other technology companies to increase their investments in America.
Nvidia has also committed to give the U.S. government 15% of the revenue it generates from selling microchips and processors in China.
Privtaely held OpenAI has struggled to get the chips it needs to power it’s A.I. models and applications and compete against rivals such as Alphabet (GOOGL).
NVDA stock has gained 33% this year to trade at $183.61 U.S. per share.
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