Nvidia Invests $100 Billion in OpenAI to Boost AI Infrastructure
Nvidia Corp. has announced a whopping US$100 billion investment in OpenAI, aiming to bolster the AI company's data center capacity and infrastructure. This significant deal comes as OpenAI's ChatGPT gains massive popularity, with approximately 700 million users weekly.
The investment will enable OpenAI to build data centers with a power capacity of at least 10 gigawatts, equipped with Nvidia's advanced AI chips. This is a substantial number, equivalent to all the AI chips Nvidia will ship this year. OpenAI CEO Sam Altman, who has led the company since 2019 and was briefly removed but reinstated in November 2023, expects this deal to drive new AI breakthroughs by securing the necessary computing power.
Nvidia, positioning itself as a champion of domestic tech infrastructure, has been involved in expanding computing infrastructure in the UK, France, and the Middle East. It has also backed several AI startups. However, the AI spending surge, including this deal, has raised concerns about a potential market bubble, reminiscent of the dot-com boom and bust. Meanwhile, the US Justice Department is investigating Nvidia for possible antitrust violations, with former President Donald Trump suggesting breaking up the company to increase competition.
Nvidia's US$100 billion investment in OpenAI signals a significant commitment to AI infrastructure. While it promises to drive AI innovation, it also highlights the growing concerns about market bubbles and antitrust issues in the tech industry.
