Nvidia Commits $100 Billion to OpenAI in Historic AI Infrastructure Deal—Stock Pops

Nvidia has pledged up to $100 billion to bolster OpenAI's computing infrastructure, marking what could be the largest AI infrastructure deal in history. The chipmaker will deploy at least 10 gigawatts of Nvidia-powered AI systems, a staggering amount of energy equivalent to powering millions of homes. OpenAI CEO Sam Altman likens compute power to the "fuel" driving AI models and revenue growth.

The deal, structured in stages, begins with an initial $10 billion investment upon signing. Nvidia will receive equity in OpenAI as part of the agreement. The announcement sent Nvidia's stock (NVDA) up 4%, from $177.50 to $184.16. Experts caution that AI's escalating electricity and water demands may strain global grids, underscoring the sector's growing environmental footprint.