Chipmaker Nvidia has announced a substantial $100 billion investment in OpenAI, forming a strategic partnership aimed at significantly expanding the computing power available to the owner of the artificial intelligence chatbot ChatGPT. This collaboration, detailed in a letter of intent signed by both companies, will lead to the addition of at least 10 gigawatts of Nvidia AI data centers, with the first gigawatt of systems slated for deployment in the second half of 2026. The final specifics of this monumental arrangement are expected to be finalized in the coming weeks.

This partnership is not an isolated effort but rather complements a broad network of ongoing collaborations. OpenAI and Nvidia are already working closely with key partners such as Microsoft, Oracle, SoftBank, and Stargate. These entities had previously pledged to invest at least $100 billion collectively in building data centers for OpenAI back in January. The timing of Nvidia’s investment also follows closely on the heels of a new tentative agreement reached by OpenAI, granting Microsoft a $100 billion equity stake in its for-profit corporation.

Speaking on CNBC, OpenAI CEO Sam Altman underscored the critical importance of these new data centers, stating that they are essential for the company to deliver desired services and continuously improve its AI models. Altman clarified that both Nvidia and Microsoft act as “passive investors,” emphasizing that OpenAI’s nonprofit board retains ultimate control over the company. OpenAI was established as a nonprofit in 2015, and its nonprofit board continues to govern the for-profit subsidiary responsible for developing and selling its AI products.

However, OpenAI’s unique corporate structure and its adherence to its original nonprofit mission have been subjects of controversy. A prominent lawsuit initiated by Elon Musk, a co-founder and initial funder of the nonprofit research lab, seeks to prevent OpenAI from shifting control away from its nonprofit origins. Musk’s suit alleges that the company has betrayed its foundational promise to develop AI for the benefit of humanity.

Adding to the challenges, OpenAI has faced scrutiny regarding the safety of its AI products. Attorneys general from California and Delaware recently issued warnings, expressing “serious concerns” about the safety of ChatGPT, particularly for children and teenagers. They cited “deeply troubling reports of dangerous interactions” between chatbots and users, including a tragic incident involving the suicide of a young Californian following prolonged interactions with an OpenAI chatbot. The parents of the 16-year-old boy, who died in April, subsequently filed a lawsuit against OpenAI and its CEO, Sam Altman. Despite these concerns, OpenAI boasts a vast user base, with 700 million weekly active users.

In a separate development, Nvidia also announced last week an investment of $5 billion in fellow chipmaker Intel. This move comes as Intel has faced difficulties in meeting the surging demand for artificial intelligence-related hardware.