At the same time as Nvidia’s chief executive Jensen Huang, he was surprised at the Openai dollars’ deal with competitor AMD-shortly after his agreement to invest up to $ 100 billion in the AI-O Sam Altman model manufacturer.
Huang appeared CNBC’s Squawk box Wednesday. When asked if he knew about the AMD deal before being announced, he replied: “Not really.”
As previously mentioned by TechCrunch, Openai’s deal with AMD is unusual. AMD has agreed to grant AMD large shares in Openai – up to 10% of the company for a period of years depending on factors such as raising the price of shares. In return, Openai will use and help develop the chipmaker’s AI GPU chips. This makes Openai shareholder at AMD.
Nvidia’s agreement is the reverse. Nvidia has invested in starting AI model, making Openai’s shareholder.
While Openai has been using Nvidia tools for years through cloud providers such as Microsoft Azure, Oracle Oci and Coreweave, “this is the first time we will sell directly to them,” Huang explained. He added that his company would continue to provide tools to cloud manufacturers as well.
These direct sales, which include AI tools beyond systems and AI networking, are intended to “prepare” Openai for the day that is its own “self-esteem overlock”, Huang said. In other words, when using his own data centers.
But Huang admits that Openai does not have the “money yet” to pay for all these tools. He estimated that every Gigawatt of AI Data Center will cost Openai “$ 50 to $ 60 billion” to cover everything from land and power to servers and equipment.
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So far, in 2025, Openai has commissioned US facilities for 10 Gigawatts through the $ 500 billion Stargate deal with Oracle and Softbank partners. (In addition, he wrote a $ 300 billion cloud deal with Oracle.)
Her collaboration with Nvidia was for at least 10 Gigawatts of AI Data Centers. Her collaboration with AMD was for 6 gigawatts. In addition, the partnership of the “Stargate UK” includes the expansion of data centers in the United Kingdom and has other European commitments. With some estimates, Openai has this year based on $ 1 trillion $.
Similar to the AMD agreement, Nvidia’s agreement has been criticized to be “circular”, Reported Bloomberg. Critics say that Nvidia is essentially an Openai markets, taking Ai Startup’s stock for its efforts.
Altman in the world: wait for more
As Huang analyzes Openai’s infrastructure needs at CNBC, Openai’s CEO interview with Andreessen Horowitz’s A16Z podcast fell.
During Podcast, A16Z co -founder Ben Horowitz told Altman that he is “very impressed by improving the structure of transactions”, referring to these most recent agreements. Andreessen Horowitz is an Openai investor, so it would be shocking if he was not impressed. Openai found a way to obtain billions of dollars of equipment in a penny of someone else. Repeatedly.
When asked about these recent agreements, Altman said, “You should expect much more than us in the coming months.”
Altman sees the future models of Openai and the upcoming other products as much more capable, thus supplying the more demand that “we decided that it is time to make a very aggressive infrastructure bet,” he explained.
The problem is that Openai’s revenue today is nowhere close to $ 1 trillion, although, from all accounts, they are rapidly increasing, Reportedly, the $ 4.5 billion bump In the first half of 2025.
However, Altman apparently believes that in the end all this investment will pay for herself. “I have never been more confident in the research map in front of us and also the economic value that would come from using them [future] models. ”
But, he said, Openai cannot reach all this economic sense on its own.
“To make the bet on this scale, we need the whole industry or a large part of the industry, to support it and this is from the level of electron for distribution of models and all things in the meantime.
So you stand by the side, technological industry. Openai is still rotating and dealing with.
