NVIDIA CEO Jensen Huang stated that OpenAI is on track to become one of the world’s largest companies. Huang said in a podcast that OpenAI “will likely be the next multi-trillion-dollar hyperscale company.”
This comment comes on the heels of a major infrastructure agreement between NVIDIA and OpenAI. The parties have issued a letter of intent for the construction of GPU-powered data centers of up to 10 gigawatts through OpenAI’s preferred cloud partners. Under the agreement, NVIDIA will invest up to $100 billion in these systems. This represents one of the largest supplier-driven investments in AI infrastructure to date.
NVIDIA and OpenAI Partnership
The agreement will allow NVIDIA to align its manufacturing roadmap with OpenAI’s goals, while OpenAI will gain early access to technologies not yet publicly available. This strengthens NVIDIA’s dominance in the AI supply chain.
NVIDIA’s strategy is noteworthy given the growing demand for GPUs from major cloud providers like Microsoft, Amazon, and Google. While the company has tied these companies to its own technologies through multi-year agreements, competitors like AMD and Intel are still trying to close the gap.
To fund these growth plans, OpenAI recently signed a $6.5 billion expansion deal with CoreWeave, a key partner of NVIDIA. NVIDIA holds a direct stake in CoreWeave. This has drawn criticism in some circles due to the concentration of capital, hardware, and access among a small number of companies.
However, Huang dismisses these concerns. He believes the future of AI will be shaped by the companies that can scale the infrastructure most quickly.
OpenAI’s massive consumption of NVIDIA’s next-generation GPUs could have a domino effect across the industry. The availability of gaming cards and workstation prices, in particular, could be directly affected. If OpenAI acquires a significant portion of Rubin or Rubin Ultra-class GPU supply, the hardware lifecycle gap between data center and consumer products could widen. This could make it harder for users to access the latest NVIDIA technology.
NVIDIA’s bold investment accelerates OpenAI’s path to becoming a hyperscale AI giant and solidifies NVIDIA’s market leadership. However, the concentration of capital and technology among a few major players could have significant consequences for industry balance and consumers.
