Nvidia, a leading technology company, plans to invest an incredible 100 billion dollars in OpenAI, the creator of ChatGPT. This amount is much larger than Nvidia's recent investment in Intel and shows how serious the company is about artificial intelligence.
Part of this huge investment will help OpenAI buy powerful computer chips from Nvidia. These chips will be used in data centers where AI is developed and improved. The two companies have signed a letter of intent to work together, aiming to build data centers with 10 gigawatts of Nvidia systems. This much computing power could supply millions of homes and will support new developments in AI technology.
While Nvidia and OpenAI have been working together before, this new deal gives Nvidia a bigger role with one of its top customers. Nvidia will get non-voting shares in OpenAI and in return OpenAI will use the investment to purchase more Nvidia hardware. The agreement will likely start with 10 billion dollars and new hardware being delivered around the end of 2026.
OpenAI's CEO Sam Altman explained that the investment is about staying ahead in a rapidly growing and competitive field. By building better computer infrastructure with Nvidia, they hope to create new AI breakthroughs that help both people and businesses.
However, some experts are concerned because the investment might seem like a "circular" deal, where money is given to OpenAI only for it to spend back on Nvidia's products. Some analysts question if there are risks with this approach. For now, it is unclear how regulators will respond, especially since the US government is supporting AI growth.
The deal also brings up questions about energy use. The planned data centers will need as much power as 8 million homes. As AI technology grows, meeting these power needs may become a bigger challenge, even as companies consider new energy sources like nuclear power.
Original article and image: https://www.pcgamer.com/software/ai/nvidia-plans-to-splash-openai-with-cash-pouring-out-usd100-billion-for-chatgpts-creator-and-making-last-weeks-intel-investment-look-like-a-drop-in-the-money-bucket/
