The money will be disbursed in stages and then be «returned» from OpenAI in the form of 4-5 million next-gen gpu purchases by the AI lab.
10 million households
10 gigawatts is enough to power 10 million households, and will complement OpenAI’s other compute investments, consisting of a $300 billion deal with Oracle over ten years, a long-time strategic partnership with Microsoft — and the Stargate program with Oracle and SoftBank aiming to build out $500 billions worth of capacity in the next five years.
— Everything starts with compute, says OpenAI CEO Sam Altman in the release, — Compute infrastructure will be the basis for the economy of the future, and we will utilize what we’re building with Nvidia to both create new AI breakthroughs and empower people and businesses with them at scale.
Baked into the deal is also a promise to «co-optimize their roadmaps» for OpenAI’s models and infrastructure with Nvidia’s hardware and software — meaning we might see specialized hardware at some point.
«Monumental» project
— This is a giant project, says Jensen Huang to CNBC, adding that it’s «monumental in size», and says in the release:
— NVIDIA and OpenAI have pushed each other for a decade, from the first DGX supercomputer to the breakthrough of ChatGPT, the CEO of Nvidia elaborates. — This investment and infrastructure partnership mark the next leap forward—deploying 10 gigawatts to power the next era of intelligence.
— You should expect a lot from us in the coming months, Altman said in an interview with CNBC — There are three things that OpenAI has to do well: we have to do great AI research, we have to make these products people want to use, and we have to figure out how to do this unprecedented infrastructure challenge.
«Preferred» partner for chips
OpenAI had recently been said to be creating their own chips with Broadcom, a process that is ongoing, but might be put on the back burner thanks to today’s news, which makes Nvidia the «preferred» supplier for chips and networking.
OpenAI was recently valued at $500 billion, and Nvidia was an early investor in October 2024, with $6.6 billion, notes Reuters.
Read more: Nvidia and OpenAIs joint release, writeups on CNBC and Reuters. Discussion on r/OpenAI.