OpenAI, the company that created ChatGPT, and NVIDIA, the company that makes the most powerful computer chips for AI, have just announced a massive team-up.
In short, they are planning to build a new generation of “AI datacenters” think of them as giant factories filled with millions of powerful computers. The goal is to create the computer power needed to build the next versions of AI, which they hope will one day lead to “superintelligence.”
Here’s a simple breakdown of what this huge announcement actually means.
What is the Plan? (The “10 Gigawatt” Project)
The partnership’s main goal is for OpenAI to build and use “at least 10 gigawatts of NVIDIA systems.”
This “10 gigawatt” number doesn’t talk about computer speed, but about electricity. A gigawatt is a massive amount of power it’s what a large nuclear power plant can produce. 10 gigawatts is enough electricity to power an entire city.
So, why are they talking about power? Because the special computer chips (called GPUs) that run AI use a ton of electricity. By announcing a 10-gigawatt plan, they are signaling that they plan to build an AI computer system on a scale the world has never seen before, using millions of NVIDIA’s chips.
What’s the Deal? (The $100 Billion Investment)
To help make this happen, NVIDIA plans to invest up to $100 billion in OpenAI.
This isn’t a simple blank check. NVIDIA will invest the money in stages, as OpenAI builds these new datacenters and installs the new NVIDIA computer systems. This partnership links the two companies together: OpenAI gets the computers and money it needs to grow, and NVIDIA gets to sell its systems for the biggest AI project in history.
When is This Happening?
This is a long-term plan. The first phase is scheduled to come online in the second half of 2026.
This first stage (just 1 gigawatt of the 10) will be built using NVIDIA’s next-generation “Vera Rubin platform” a new, even more powerful set of chips that aren’t even out yet.
Why Are They Doing This?
Both companies believe that “compute” (computer power) is the single most important ingredient for making AI smarter.
- Sam Altman, the CEO of OpenAI, said that this computer infrastructure “will be the basis for the economy of the future.”
- Jensen Huang, the CEO of NVIDIA, called it “the next leap forward” in powering a “new era of intelligence.”
OpenAI wants to be the first to build “artificial general intelligence” (AGI), which is an AI that can think and reason as well as (or better than) a human. To do that, they need to train their AI models on a truly massive scale, which requires this new, giant computer system.
Does This Affect Other Partners (Like Microsoft)?
The announcement clarified that this new partnership complements (adds to) the work OpenAI is already doing with other companies, most notably Microsoft, as well as Oracle and others. It doesn’t replace those deals; it just adds another major partner to OpenAI’s mission.
In short, the company that makes the world’s most popular AI is teaming up with the company that makes the world’s best AI chips for a massive, long-term project.
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