Nvidia's $1000 Billion OpenAI Deal Won't Impact Other Clients

Nvidia has reassured its clients that its agreement with OpenAI, which involves a 1000 billion dollar investment, will not affect its relationships with other customers. The company has emphasized that this investment will not alter its business focus or impact the supply to other clients, regardless of whether it holds equity in them.

Nvidia and OpenAI announced on Monday that they have signed a memorandum of understanding to proceed with this 1000 billion dollar deal. The goal is to build data centers equipped with Nvidia devices, with a power capacity of at least 10 gigawatts. This infrastructure will be used for developing and running AI models.

In recent years, Nvidia's chips have become highly sought after in Silicon Valley, with data center operators competing to acquire them. This trend has driven Nvidia's sales and stock price to new heights, making it one of the most valuable companies globally.

Nvidia's CEO has been committed to expanding its customer base to maintain growth momentum. Despite numerous achievements, a significant portion of Nvidia's revenue still comes from a few major companies, including Microsoft, Meta, Amazon, and Alphabet.

These tech giants are eager to quickly build AI infrastructure and attract more users to their services. They are also deploying or developing their own components to reduce their dependence on Nvidia. Concerns about losing priority could prompt these clients to increase their investments in this area or more seriously consider alternatives from potential competitors, such as AMD.