Nvidia’s $100B OpenAI Deal Sparks Debate

NVIDIA’s proposed $100 billion investment in OpenAI marks a historic move in the tech industry, blending financial backing with chip supply to one of its largest customers. The initial $10 billion will fund one gigawatt of data center capacity using Nvidia’s Vera Rubin chips, with construction slated for late 2026. However, OpenAI’s full ambitions require far more capital—up to $50 billion per gigawatt—leaving a significant funding gap and raising questions about future financing sources.

The deal also intersects with OpenAI’s ongoing transition from a non-profit to a public benefit corporation, a shift that could ease fundraising and pave the way for a public offering. Nvidia’s investment hinges on this structural change, though details remain unclear.

Valuation concerns loom large. OpenAI is currently valued at $500 billion, but it’s uncertain whether future Nvidia investments will follow this benchmark. The partnership also stirs competitive tensions, as Nvidia may prioritize chip supply to OpenAI, potentially impacting rivals like Anthropic, Microsoft, and AMD.

Oracle, which recently secured massive cloud contracts with OpenAI, may benefit from Nvidia’s capital infusion, reinforcing its bullish forecasts. Yet, the deal leaves more questions than answers about the future of AI infrastructure, competition, and corporate strategy.