OpenAI, the company behind ChatGPT, is set to receive significant investment from Nvidia, a leading chip manufacturer, which could reach up to $100 billion. This partnership positions both companies as front-runners in the development of artificial intelligence systems with the potential to revolutionize both the economy and society.
The collaboration aims to enable OpenAI to expand its infrastructure, specifically the data centers required to power ChatGPT, which has reached 700 million weekly users globally as of August. This expansion will demand 10 gigawatts of power, comparable to the electricity consumption of about eight million households. However, no timeline has been set for this ambitious project.
Jensen Huang, CEO of Nvidia, described it as a monumental undertaking during a joint CNBC appearance with Sam Altman, CEO of OpenAI, and the company’s president, Greg Brockman. Altman expressed that the investment underscores a commitment to enhance the capabilities and returns of OpenAI’s AI products. He highlighted three critical areas: conducting groundbreaking AI research, developing user-friendly products, and tackling the significant infrastructure challenges ahead.
The announcement of this collaboration had a positive impact on the stock market, despite signs of an economic slowdown. Nvidia’s shares rose over 3%, boosting the company’s market value to nearly $4.5 trillion, maintaining its status as the world’s most valuable publicly traded company. Meanwhile, the S&P 500 index increased by more than 0.3%, reaching a new all-time high, while the Dow Jones Industrial Average and the Nasdaq saw gains of about 0.1% and 0.6% respectively.
The enthusiasm for AI investments persists, even as economic pressures, like a weakening job market, continue to emerge. Notably, the Federal Reserve recently implemented its first interest rate cut of 2025, amidst concerning labor market signals. Fed Chair Jerome Powell remarked on the visible cooling of the labor market.
This strategic move by Nvidia and OpenAI highlights the growing importance and potential of AI technology in the current global landscape, suggesting a promising, transformative future for the sector.