Nvidia is set to invest up to $100 billion in OpenAI, marking a significant AI infrastructure partnership. The deal, under a letter of intent, involves OpenAI purchasing millions of Nvidia processors, potentially generating hundreds of billions in sales for Nvidia. The first $10 billion will be triggered upon signing a definitive agreement. OpenAI, valued at around $500 billion, boasts 700 million weekly users and requires immense computing power for training its large language models like ChatGPT. Nvidia, the world’s most valuable company with a market cap exceeding $4.4 trillion, is capitalizing on the AI boom. OpenAI’s CEO Sam Altman emphasized the foundational role of compute infrastructure for future economies, leveraging their collaboration to develop new AI data centers. Nvidia’s stock spiked 3.9% following the announcement, highlighting market optimism. Additionally, Nvidia has announced a partnership with Intel for AI chip development, while Microsoft continues to support OpenAI.
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