Nvidia, OpenAI
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A supply chain analysis shows the likelihood of labor shortages and a heavy reliance on foreign companies to make components for data centers and power plants
Nvidia will invest up to $100 billion in OpenAI as the artificial intelligence lab sets out to build hundreds of billions of dollars in data centers.
But Nvidia, in this one recent move, has shown its strength as the central player in the AI market. The company aims to invest as much as $100 billion in Open AI amid a buildout of the lab's data centers. This partnership could become the biggest profit engine in AI history -- and secure Nvidia's AI empire. Let's check it out.
OpenAI plans to build and deploy Nvidia systems that require 10 gigawatts of power, which is equivalent to 4 million and 5 million graphics processing units. Stocks including Taiwan Semiconductor Manufacturing Co.
Nvidia on Monday said it will invest as much as $100 billion in OpenAI to help the ChatGPT maker support a massive build-out of data centers equipped with Nvidia’s chips – a deal that some analysts say raises questions about whether Nvidia is investing heavily to prop up the market and keep companies spending on its products.
For investors, the message is simple: Nvidia is committing up to $100 billion in staged capital and hardware to OpenAI's buildout -- an investment that ultimately flows back into its own ecosystem. The stock isn't cheap, but the premium reflects a level of certainty few other tech growth stories can match.