Here’s what’s on our plate today:

• 🧠 Nvidia’s $100B bet on OpenAI could reshape the AI economy.

• 💻 Microsoft adds Anthropic to 365, Intel seeks help, and Altman’s AI empire.

• 🛠 Tools to explain research, visualize your LinkedIn, and test ChatGPT’s voice.

• 📊 Will these mega-deals lead to an AI monopoly?

Let’s dive in. No floaties needed…

The Laboratory

Why Nvidia’s $100 billion bet matters for the future of AI

Since OpenAI released ChatGPT in November 2022, companies developing large language models (LLMs) and those supplying the chips that power them have seen exponential growth. This growth is based on available products as well as on the belief that these companies will continue to scale. The market valuation of OpenAI is $500 billion, which is a clear indication that the AI startup is expected to continue scaling its operations.

However, in order to continue scaling, OpenAI needs tremendous resources, primarily in the form of compute power. This power rests in data centers where GPUs are used to train and then run AI models. This is where Nvidia comes into the picture.

The ever-increasing demand for compute power, not just from OpenAI but also from companies like Anthropic and Meta, has propelled Nvidia to the forefront of the AI boom. Allowing it to reach a market capitalization of $4 trillion in July 2025.

Now, it looks like the two companies are planning to tie their fortunes together to ensure mutual benefit in the long run.

Recently, Nvidia and OpenAI announced a deal that has little precedent in the industry. According to the deal, Nvidia will invest up to $100 billion in OpenAI. While at the same time, it will continue to supply the AI startup with millions of its market-leading AI chips.

What the Nvidia-OpenAI deal covers

As per the deal, Nvidia and OpenAI have signed a letter of intent for a landmark strategic partnership to build the next generation of AI infrastructure. Under the plan, OpenAI will deploy at least 10 gigawatts of Nvidia systems to train and operate its future models, including those aimed at achieving superintelligence.

To support this massive rollout, Nvidia plans to invest up to $100 billion in OpenAI as its systems come online. The first stage, powered by Nvidia’s Vera Rubin platform, is scheduled to launch in the second half of 2026.

As part of the deal, Nvidia will become OpenAI’s preferred compute and networking partner, with both companies aligning their hardware and software roadmaps.

At the time of announcing the deal, leaders of both companies highlighted their long-standing collaboration, with Nvidia CEO Jensen Huang calling the deal the “next leap forward,” while OpenAI’s Sam Altman stressed that compute infrastructure is the foundation of the future economy. At first glance, the deal looks like a smart shift for the companies, and though details are yet to be shared, the deal has the potential to redirect the future of AI.

The missing financing structure

So far, only the scale, intent, and initial capital have been disclosed, leaving major details unresolved. There is no clarity on the funding plan, governance structure, geographic footprint, energy sourcing, or impact on rivals. All these questions will determine if the partnership is a sustainable leap towards AGI or a flashpoint for regulatory and competitive battles.

According to a Reuters analysis, in an August earnings call, Huang estimated that building an AI data center requires about $50 billion per gigawatt of capacity, with roughly $35 billion of that spent on Nvidia’s chips and equipment.

Under its new commitment, Nvidia will invest about $10 billion per gigawatt to help OpenAI construct 10 gigawatts of infrastructure. That still leaves around $40 billion per gigawatt that OpenAI must secure from other sources.

So far, OpenAI has not indicated whether it agrees with Huang’s cost projections or how it plans to raise the additional funding, and it declined to comment on its financing strategy.

Other than the financing, energy sourcing is another area that the deal does not address.

Running 10 gigawatts of computing power raises questions about where the power will come from, and whether it will rely on renewable energy, nuclear, or fossil fuels. All these are important factors in determining the scale and scope of building up an AI infrastructure. Especially since there is an increasing focus on the impact of big data centers on the environment.

Many countries have even made pledges to focus on renewable energy and reduce dependence on fossil fuels, which could further raise costs. And while companies like Google and Meta have started looking at alternatives, including nuclear energy, neither OpenAI nor Nvidia has taken any steps in that direction.

The deal also shies away from specifying the geographic footprint. The location of data centers will be an important factor for regulation, geopolitics, and grid capacity.

However, these questions can be addressed in the future. A more pressing question is how the deal will affect OpenAI’s current structure.

How the deal could reshape OpenAI’s structure

OpenAI is currently in the process of converting itself into a Public Benefit Corporation (PBC). This would let it raise capital more easily while keeping a mission-driven oversight. If Nvidia’s investment is conditional on this conversion. It’s unclear if money would flow into the existing capped-profit entity or the future PBC.

Another issue is that the current deal is based on OpenAI’s current valuation of $500 billion. But the full $100 billion could stretch over years. If OpenAI’s valuation rises (say, $800 billion or $1 trillion), future tranches could buy Nvidia less equity for the same cash.

Then there is the question of market consolidation. Together, Nvidia and OpenAI have the potential to disrupt the AI market, which is still in its nascent stage.

If Nvidia supplies millions of chips to OpenAI while also taking equity, it could create a conflict-of-interest optics. While Nvidia insists that supply to others will not change, it will be interesting to see if customers like Anthropic, Cohere, and Google DeepMind will be able to get their hands on enough next-gen chips from Nvidia, considering they compete with OpenAI in the LLM space.

While these questions wait to be answered for Nvidia and OpenAI, the deal could ensure they have a lasting impact on the AI industry.

The risk of market consolidation

By committing 10 gigawatts of Nvidia systems, the partnership represents one of the largest AI infrastructure buildouts in history, with the potential to fast-track progress toward advanced AI and even AGI.

Nvidia’s proposed $100 billion investment is equally unprecedented, reflecting both its confidence in OpenAI and the central importance of compute power in shaping the future AI economy.

At the same time, the deal strengthens industry consolidation by tying OpenAI’s roadmap closely to Nvidia’s hardware and software ecosystem, further entrenching Nvidia’s dominance in AI chips and networking.

It also complements OpenAI’s existing collaborations with Microsoft, Oracle, SoftBank, and Stargate, creating a vast, interconnected ecosystem aimed at building infrastructure on a planetary scale. With over 700 million weekly users, OpenAI already commands enormous reach, and this partnership gives it the compute backbone to scale both its user base and its technological ambitions.

Why the partnership strengthens both giants

The market for AI is evolving rapidly. Within the span of a couple of years, it has changed the fortunes of companies engaged in developing AI and the chips that power it. However, its true potential, if industry insiders like Altman and Huang are to be believed, is yet to be realized. While the industry evolves, regulations are trying to catch up, and so is the supply chain that delivers AI tools to the end-consumer.

In this backdrop, the deal between two of the most prominent companies associated with the AI boom signals a shift in what the future of AI infrastructure and development could look like. The deal allows OpenAI to expand its infrastructure using the cash inflow from Nvidia.

For the chipmaker, it ensures that future AI models and OpenAI will be locked in its ecosystems of hardware and software, cementing its future as the powerhouse of AI tools.

For competitors like Meta, Google DeepMind, and even Microsoft, the deal could either restrict access to the most advanced AI chips or force them into striking similar alliances, for either chips or compute power, to keep pace.

Either way, it underscores a broader trend: while startups and smaller businesses race to adopt AI tools, the real leverage over compute and advanced models is consolidating in the hands of a few powerful corporations. The future of AI may be defined not just by innovation, but by who controls the infrastructure that makes it possible.

TL;DR

• Historic deal: Nvidia will invest up to $100B in OpenAI, supplying 10GW of AI infrastructure to power future models.

• Unclear details: Key questions remain around financing, energy sourcing, and how this impacts rivals like Meta or Anthropic.

• Power consolidation: The deal may entrench Nvidia’s dominance and cement OpenAI’s lead—reshaping the AI chip landscape.

• Massive implications: This could accelerate the AGI race while forcing other companies to form similar alliances to keep up.

Friday Poll

Headlines You Actually Need

• Microsoft 365 taps Claude: Anthropic’s Claude AI models are now powering new features across Microsoft 365 Copilot.

• Apple may invest in Intel: Intel is seeking Apple’s backing in a bold bid to revive its position in the chip race.

• Sam Altman’s AI empire expands: OpenAI’s CEO eyes New York and San Diego as new AI hubs—sparking concerns along the way.

Weekend To-Do

• Visualize your LinkedIn: Transform your LinkedIn profile into a visual resume using this clever drag-and-drop interface.

• Estimate Your AI Energy Impact: Curious about the energy footprint of AI? Plug in model specs and training hours to estimate environmental impact.

• Trace Big Tech’s AI Alliances: Use Crunchbase’s free plan to explore funding histories and strategic deals behind Nvidia, OpenAI, and rivals.

Rate This Edition