Nvidia's CFO, Colette Kress, revealed that the chipmaker has yet to finalize a monumental $100 billion deal with OpenAI, the parent company of ChatGPT. This partnership, which has sparked intense discussion, involves Nvidia investing in OpenAI and deploying an impressive 10 gigawatts of its systems, capable of powering over 8 million U.S. homes. The agreement is still in the works, but Kress assured that progress is being made. This news comes amidst concerns about circular deals in the AI ecosystem, as Nvidia and OpenAI are two of the most prominent players in the artificial intelligence race.
The potential deal has significant implications, as OpenAI is a major customer for Nvidia's chips, alongside large cloud providers. Nvidia's CEO, Jensen Huang, has revealed a staggering $500 billion in bookings for its advanced chips through 2026. However, the chips destined for OpenAI are not included in these bookings and will contribute to the overall total. Kress emphasized that the $500 billion figure does not encompass the work being done on the agreement with OpenAI, indicating that the deal could significantly impact Nvidia's future sales.
Nvidia has been actively forming partnerships with AI startups and investing in major customers, which has raised Wall Street's concerns about an AI bubble and circular deals. Recently, Nvidia committed up to $10 billion to OpenAI rival Anthropic, and Kress suggested that this deal could also boost Nvidia's bookings. The company's shares experienced a 2.6% increase, reflecting the market's anticipation and interest in these strategic partnerships.
