Nvidia Stock Climbs as Chipmaker Unveils Plans to Invest Up to $100B in OpenAI

Nvidia and OpenAI’s business relationship is entering a new phase.

The chipmaker at the heart of the AI boom and world’s most valuable company said Monday it plans to invest up to $100 billion in ChatGPT maker OpenAI to build out AI data centers.

Nvidia (NVDA) shares gained close to 4% following the news, making the stock one of the best performers in the Dow, Nasdaq, and S&P 500 Monday afternoon. Several Nvidia partners, including Super Micro Computer (SMCI) and Micron Technology (MU), saw their shares rise along with companies that make equipment to manufacture chips, boosting the tech sector.

“This investment and infrastructure partnership mark the next leap forward—deploying 10 gigawatts to power the next era of intelligence,” Nvidia CEO Jensen Huang said in a release.

Nvidia said the first of those 10 gigawatts is expected to be deployed in the second half of next year, on its next-generation Vera Rubin platform.

OpenAI CEO Sam Altman said it will use what it’s building with Nvidia to “create new AI breakthroughs and empower people and businesses with them at scale.”

The companies added they expect to finalize the details of the partnership in the coming weeks.

With Monday’s gains, Nvidia shares have added more than a third of their value since the start of the year.

This article has been updated since it was first published to include additional information and reflect more recent price values.