Nvidia CEO Jensen Huang delivers the keynote for the Nvidia GPU Technology Conference (GTC) at the SAP Center in San Jose, California, U.S. March 18, 2025.
Brittany Hosea-Small | Reuters
Rarely in life do you get a win-win scenario, but Nvidia seems to have conjured one in its partnership with OpenAI. The chipmaker — which lately has been on a spending spree equal in intensity to a tourist shopping for tax-free goods in Japan — announced Monday an investment of up to $100 billion in OpenAI.
Here’s the clever bit. OpenAI is planning to build systems with Nvidia’s artificial intelligence chips. Each one will require 10 gigawatts of power, which will comprise around 4 million to 5 million graphics processing units, Nvidia CEO Jensen Huang told CNBC. And Nvidia will make its first investment of $10 billion when OpenAI finishes building its first gigawatt of Nvidia systems.
“Nvidia invests $100 billion in OpenAI, which then OpenAI turns back and gives it back to Nvidia,” Bryn Talkington, managing partner at Requisite Capital Management, told CNBC after the announcement. “I feel like this is going to be very virtuous for Jensen.”
To borrow the lyrics from hit musical Chicago: When you’re good to Nvidia, Nvidia’s good to you.
In other tech news, Apple’s newly released iPhones appears to be more in demand than its predecessor, according to analysts. That gave its stock a nice 4.3% bump Monday, which is finally in the green for the year — the last of the “Magnificent Seven” to do so. With Apple’s price increase for its iPhone 17 Pro, however, my bank account might be the one turning red.
— Kif Leswing and Ashley Capoot contributed to this report
What you need to know today
And finally…
A robotic machine manufactures a semiconductor chip at a stall to show investors during The Advantage Assam 2.0 Investment Summit in Guwahati, India, on Feb. 25, 2025.
Nurphoto | Nurphoto | Getty Images
India is betting $18 billion to build a chip powerhouse. Here’s what it means
India is one of the world’s largest consumers of electronics, but it has no local chip industry and plays a minimal role in the global supply chain. New Delhi’s “Semiconductor Mission” aims to change that.
The ambition is bold. It wants to create a full supply chain — from design to fabrication, testing and packaging — on Indian soil. Yet progress so far has been uneven, and neither the investments nor talent pool is enough to make India’s chip ambitions a reality, say experts.
— Priyanka Salve