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Caroline Hyde’s Post

Caroline Hyde

Anchor on Bloomberg TV

2d

NVIDIA commits to invest $100B in OpenAI , in return for the ChatGPT maker’s demand for Rubin chip architecture. The AI infrastructure money merry-go-round continues… …and it adds $150B to Nvidia’s market cap! ⚡️Nvidia gets equity ⚡️OpenAI gets millions of chips allocated its way ⚡️10GB of compute comes online to feed our generative AI addiction The $100B to OpenAI will come in installments as 10GB of compute is built out amid the rush for data centers and power. 1GB of Nvidia systems = first $10B is sent. This first amount is planned for 2H 2026. It makes the $5B Intel investment feel tiny… All of this is “complementary” to the other AI deals already announced - Stargate etc. So what do you think to the latest agreement? ✌️❤️ #tech #artificialintelligence #chips

53 Comments

Transcript

$100 billion NVIDIA is investing in Open AI. In return, Open AI promises to keep buying chips from NVIDIA. There is a circle of money that is going on here, but follow me because it's a big infrastructure deal that's going forward. It's basically a promise to commit. Open AI compute to buying Nvidia's GPUs are the future. Then next iteration the the Ruben system, the architecture that follows on from Blackwell. So we have NVIDIA saying I'll give you $100 billion, I'll get your equity in return, but you have to commit to using Nvidia's own chips in your next build out of data centers. And so we see $10 billion go to open AI the minute one GW. Of power, compute is online. They promised to get 10 gigawatts worth of compute online in this deal. That's enough to power seven and a half million homes per year. This is huge, and it's a commitment of the biggest players in AI to keep using each other for their futures. Their destinies are totally interlinked because open AI has needed Nvidia's infrastructure to train its models and to become the Chachi BT explosion that we all know. The 700 million people use every single week, and in return, NVIDIA needs to signal to the market that opening is committed to it, to its own chips, even as perhaps it. Sees Open AI design some of their own as well. It's interesting these deals seem to have bigger and bigger numbers and more and more intricate partnerships going on, but everyone needs each other in this race. Ray, I compete.

Bogdan N., graphic

Founder/Digital Marketing Expert @ filterthenoisemarketing.com

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nvidia is king!

Ragnvald Rasmussen, graphic

Ragnvald Rasmussen

Daglig leder i Din Boligsøknad AS | Vi hjelper deg trygt gjennom byggesøknaden! fra ide til godkjenning

2d

Its pure genius move from Nvidia!

Matthew Nance, graphic

AI & Business Strategy | Summit Strategies Group | Redefining How Small Businesses Scale with AI

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It's interesting how closely the AI race resembles the oil industry from a century ago. Whoever controls the infrastructure, in this case compute and chips, effectively sets the pace of innovation for the entire industry.

Wenyi Shao, graphic

staff MW RF engineer at Northrop Grumman

2d

openAI invests $100B on Oracle. Oracle invests $100B on Nvidia. Nvidia invests $100B on openAI. None of them really spend a cent. GDP increases $300B.

Simon Macdonald, graphic

Simon Macdonald

Chief Commercial Officer

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Jessica Botwell, graphic

Jessica Botwell

Community AI Specialist

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Caroline Hyde great reporting as always. I think the question we need to start asking is what exactly are they spending the money on and where. The devil is always in the details, right? It sounds complimentary but is it? How much a conflict now does NVIDIA have with OpenAI vs. its competitors? Is it closing the door on other more regional players? Personally, I'd like to see more international investment such as in Canada like with our company CanXP AI as well so NVIDIA can diversify its portfolio more.

Simon Macdonald, graphic

Simon Macdonald

Chief Commercial Officer

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Well that is a hard to beat HUGE number !!!

Mayank Awasthi, graphic

AI | Growth & Sales | Product Strategy | Product Development | Digital Transformation | Master Networker

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For me, this is a reminder that disruption in AI will not come only from new models. It will come from new strategies to secure compute, power, and capital at nation scale. Whoever wins that race will shape the industry.

Kanu Avasthy, graphic

Marketing Leader | Fractional/Head of Marketing | SaaS & Sustainability | Growth, GTM & Demand Generation | Digital Strategy & Team Leadership

2d

Sounds like a massive ponzi - nothing ever goes wrong in a ponzi

Mike McCann, graphic

Business Development Specialist Specializing in Communication for Large Sales and Employment | Organic Dark Chocolate Candy Manufacturer for Events | Author and Writer | Creator of “Hallmark Letter Program”

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Executives retain their focus on their customers despite this big deal with OpenAI...I don't believe this for a moment. Typically, executives will do whatever is in THEIR best interest...selective memory based on current circumstances. Let's see, end-of-year-bonus time is just around the corner. I will support an executive that says they want this-or-that and they will do their best to protect my investment after that. Mike

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Caroline Hyde

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