Nvidia's $100 Billion Deal with OpenAI: A Warning Sign?

Nvidia and OpenAI have announced a $100 billion deal to build AI datacenters, the largest AI deal ever. Nvidia supplies the chips, while OpenAI trains the models. This deal is expected to boost the entire AI supply chain and is seen as bullish for AI. However, some analysts are concerned that the market may be getting frothy, similar to the internet bubble in 1998.

In a significant move that could redefine the landscape of artificial intelligence (AI), NVIDIA and OpenAI have announced a strategic partnership worth up to $100 billion. This deal, announced on September 22, 2025, is set to deploy 10 gigawatts of NVIDIA's advanced AI systems to build AI datacenters for next-generation AI models. The partnership marks the single largest AI infrastructure effort to date, heralding a new era of superintelligent AI development NVIDIA and OpenAI Announce Transformative $100 Billion AI Partnership^[1].

The collaboration between NVIDIA and OpenAI, which began over a decade ago, has been marked by pivotal breakthroughs. Early innovations like ChatGPT were powered by NVIDIA hardware, setting a strong foundation for their current expansive venture. This partnership aims to elevate AI infrastructure to unprecedented levels by deploying 10 gigawatts of NVIDIA systems dedicated to building and operating OpenAI’s next-generation AI datacenters NVIDIA and OpenAI Announce Transformative $100 Billion AI Partnership^[1].

NVIDIA's commitment to invest up to $100 billion in OpenAI highlights the transformative aspirations driving this partnership. The financial infusion will roll out in phases, synchronized with each gigawatt deployment, demonstrating an innovative investment model tailored to AI infrastructure growth. This commitment underscores the shared vision of both companies in pushing the boundaries of AI development while setting new benchmarks in tech partnerships NVIDIA and OpenAI Announce Transformative $100 Billion AI Partnership^[1].

The Vera Rubin datacenter platform, projected to support the initial gigawatt deployment, represents the cutting-edge technology underpinning this initiative. Expected to be operational by the latter half of 2026, this platform integrates cutting-edge GPUs and CPUs, meticulously crafted for handling the massive data processing and computational demands of AI training NVIDIA and OpenAI Announce Transformative $100 Billion AI Partnership^[1].

The scale of NVIDIA's investment is unparalleled in the tech world, underscoring a strategic alignment with OpenAI to propel AI capabilities to new heights. This financial commitment is not merely symbolic; it underscores NVIDIA's confidence in the transformative potential of large-scale AI systems that their hardware will enable NVIDIA and OpenAI Announce Transformative $100 Billion AI Partnership^[1].

The partnership is poised to impact various facets, from transforming AI research and applications to addressing ethical and logistical challenges surrounding AI's rapid evolution. It channels the combined strengths of both OpenAI and NVIDIA towards building an AI ecosystem that aims to lead the world into an era where AI capabilities could redefine boundaries and reshape industries NVIDIA and OpenAI Announce Transformative $100 Billion AI Partnership^[1].

While the deal is seen as bullish for the AI supply chain, some analysts are concerned that the market may be getting frothy, similar to the internet bubble in 1998. The rapid growth and investment in AI infrastructure could lead to market volatility and potential overvaluation of AI stocks NVIDIA and OpenAI Announce Transformative $100 Billion AI Partnership^[1].

In conclusion, NVIDIA and OpenAI's $100 billion deal is a transformative move that could significantly boost the AI supply chain. However, the market's response and potential risks need to be closely monitored.