ChapGPT parent OpenAI is poised to secure up to $100 billion in funding from chip juggernaut Nvidia, reinforcing the partnership between the two as they lead the charge in developing artificial intelligence systems capable of revolutionizing the economy and society.
The companies indicated that this investment will allow OpenAI to expand its network of data centers necessary for powering ChatGPT, which reached 700 million weekly global users in August. This expansion will necessitate building out 10 gigawatts of power, a demand comparable to that of about eight million homes. No specific timeline for this development was provided.
“This is a giant project,” noted Nvidia CEO Jensen Huang during a joint CNBC appearance with OpenAI CEO Sam Altman and Greg Brockman, the company’s president.
Altman remarked that the investment signifies a gamble on substantially enhancing the current capabilities of its AI offerings — and the associated financial benefits.
“OpenAI has three crucial objectives. We must excel in AI research, create products that appeal to users, and tackle the unprecedented infrastructure challenges,” he stated.
The announcement also bolstered stock markets to new heights, despite mounting evidence of an overall economic decline. Nvidia shares surged over 3% — representing about $200 billion — further cementing its status as the world’s most valuable publicly listed company, now valued at nearly $4.5 trillion.
The S&P 500 climbed more than 0.3% in Monday trading as it touched a fresh all-time high. The Dow Jones Industrial Average gained about 0.1%, while the tech-heavy Nasdaq jumped 0.6%.
AI bets have continued to fuel investors’ appetite for stocks even as signs of economic stress mount. The Federal Reserve announced its first rate cut of 2025 last week amid growing indications of a weakening jobs picture.
“The labor market is really cooling off,” Fed Chair Jerome Powell said.
