Nvidia and OpenAI continue talks on $100 billion collaboration
By ForGeeks
Nvidia confirms that a collaboration agreement with OpenAI worth about $100 billion is still under discussion and no final signing has been reached. The announcement was made by Nvidia CFO Colette Kress at the UBS Global Technology and AI Conference.
Nvidia’s chief financial officer, Colette Kress, said at the UBS Global Technology and AI Conference.
Initial plans call for the deployment of millions of Nvidia GPUs over several years, which should provide 10 GW of data center capacity. However, Nvidia emphasized that there is no guarantee of final agreements and the possibility of the deal being changed.
At the same time, the company noted the risks associated with long-term orders with no cancellation options and the constant release of new architectures, which could lead to excess inventory and make it difficult to forecast demand.
The company’s plans also include major projects – Blackwell and Vera Rubin systems for 2025-2026 with an investment of about $500 billion. Those costs do not include potential demand associated with a possible deal with OpenAI.
Although Nvidia shares rose about 2.6% after the CFO’s comments, investor concerns about the AI bubble persist – circular deals where Nvidia invests in startups that then buy Nvidia chips make the entire market dependent on each other.
As for competitors, Kress said Nvidia has “absolutely no worries” about Google and others coming up with their own TPUs, since most of the industry currently uses Nvidia’s platform, and abandoning it is a long and complicated process.
