Big challenge to OpenAI's $100 billion deal with NVIDIA
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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.
Chipmaker Nvidia will invest up to $100 billion in OpenAI and provide it with data center chips, the companies said on Monday, a tie-up between two of the highest-profile leaders in the global artificial intelligence race.
The companies say the partnership will enable OpenAI to build and deploy at least 10 gigawatts of Nvidia systems for its artificial intelligence data centers to train and run its next generation of models.
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.
10hon MSN
Making OpenAI and Nvidia's giant AI project a reality will take a lot of foreign-made parts
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's planned $100 billion investment in OpenAI represents a historic alliance between the dominant AI GPU developer and a leading AI model developer, but it raises serious antitrust concerns over potential market favoritism,