Nvidia announced on Monday that it will invest $100 billion in OpenAI, supporting the lab’s plan to develop massive data centers powered by Nvidia’s AI processors.

According to both companies, OpenAI intends to build and deploy Nvidia-based systems with a power demand of 10 gigawatts—a scale that underscores the enormous energy needs of the world’s largest AI chip clusters.

The partnership—described by Jensen Huang as “monumental in size”—underscores the deep ties between OpenAI and Nvidia, two key forces behind the AI surge. Demand for Nvidia’s GPUs surged after OpenAI launched ChatGPT in 2022, and the lab continues to depend on those chips to build and deliver its AI models.

“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, stated after the announcement.

“I feel like this is going to be very virtuous for Jensen.”

The deal highlights the massive amount of Nvidia technology OpenAI will need to power its next wave of AI models.

With demand surging, the company said it now supports 700 million people using its tools every week, requiring an ever-expanding supply of chips to keep pace.

“You should expect a lot from us in the coming months,” Altman said in the interview. “There are three things that OpenAI has to do well: we have to do great AI research, we have to make these products people want to use, and we have to figure out how to do this unprecedented infrastructure challenge.”

The companies said the funding will be rolled out gradually as new infrastructure comes online, with Nvidia serving as OpenAI’s preferred supplier for chips and networking equipment.

While Nvidia remains the dominant force in AI semiconductors, it is facing growing competition from AMD and cloud providers developing their own chips and integrated systems.