Nvidia and OpenAI’s Growing Partnerships in AI Infrastructure

At the same time, Nvidia’s CEO Jensen Huang expressed astonishment regarding OpenAI’s significant multibillion-dollar partnership with AMD, while Sam Altman indicated that more similar collaborations are anticipated soon.

During an appearance on CNBC’s Squawk Box, Huang confessed he had no prior knowledge of the AMD agreement before its announcement. “Not really,” he remarked when asked about Nvidia’s awareness of the deal.

The OpenAI-AMD Agreement

The OpenAI-AMD deal is distinctive as it represents a significant shift in the AI hardware landscape. Under this arrangement, AMD will offer OpenAI stock valued at up to 10 percent of the chipmaker’s market value, contingent on various factors such as stock performance and development achievements. In exchange, OpenAI will utilise and assist in improving AMD’s upcoming AI GPUs, effectively making OpenAI an investor in AMD.

Nvidia’s Investment in OpenAI

Conversely, Nvidia’s partnership with OpenAI is structured differently. Nvidia has made direct investments in OpenAI, establishing the AI firm as a key portfolio collaborator. Huang confirmed that the partnership includes direct sales of AI systems and networking tools, marking a departure from the previous model where OpenAI accessed Nvidia’s GPUs through cloud providers like Microsoft Azure, Oracle OCI, and CoreWeave.

“This is the first time we’re going to sell directly to them,” Huang clarified. He also noted that Nvidia intends to continue supporting major cloud platforms while preparing OpenAI for the eventuality of becoming an autonomous hyperscaler.

However, Huang recognised that OpenAI currently lacks the necessary financial resources to fully realise its infrastructure expansion. “They don’t have the money yet,” he mentioned, estimating that constructing one gigawatt of AI data centre capacity may cost between $50 and $60 billion, which encompasses everything from land acquisition to server expenses.

OpenAI’s Infrastructure Plans

In 2025 alone, OpenAI has commissioned 10 gigawatts of U.S. data centre facilities as part of its monumental $500 billion Stargate alliance with Oracle and SoftBank, paired with a $300 billion cloud contract with Oracle. It has also established significant partnerships with Nvidia and AMD for a minimum of 16 gigawatts of AI computational capacity, along with additional developments under “Stargate UK” and European initiatives. Analysts project that the total infrastructure investments could exceed $1 trillion this year.

Although these partnerships have faced criticism for being cyclical, as reported by Bloomberg—with each company funding OpenAI’s purchases in return for equity—Altman stands firm on the assertive approach they are taking.

Future Plans and Partnerships

In a recent episode of Andreessen Horowitz’s a16z Podcast, Altman informed Ben Horowitz that OpenAI’s acquisition frenzy is just commencing. “You should expect much more from us in the coming months,” he asserted.

Altman explained that OpenAI’s strategy to invest in large-scale infrastructure is driven by the projected demand for its future AI models. “We have decided that it is time to make a very aggressive infrastructure bet,” he stated, expressing confidence in both the company’s research capabilities and the long-term economic prospects of its forthcoming technologies.

Reports indicate that OpenAI generated $4.5 billion in revenue during the first half of 2025, which represents only a fraction of the investment scale being pursued. Nevertheless, Altman believes in the long-term benefits. “I’ve never been more confident in the research roadmap in front of us and also the economic value that will arise from utilising those future models,” he explained.

He also conceded that OpenAI cannot realise its ambitions independently. “To make the bet at this scale, we kind of need the whole industry, or a considerable portion of it, to support it… from electrons to model distribution and everything in between. So we’re going to partner with a lot of people.”