Key takeaways
- NVIDIA and OpenAI have entered a partnership that will see the two massive AI companies working together to bring AI to new heights.
- The deal states that NVIDIA will invest $100 billion into OpenAI, which will be used to purchase AI chips from the chipmaker.
- NVIDIA does not receive any voting power from the massive investment, which is quite uncommon across the industry.
Two AI giants are joining forces, with chipmaker NVIDIA reportedly entering a partnership with OpenAI that would see $100 billion invested in the world’s foremost AI company.
The race for AI supremacy has been a hectic one. New companies are popping up every day, and big tech staples like Google and Microsoft have been vying for the top spot for the last few years to the tune of billions of dollars.
This partnership between NVIDIA and OpenAI could be the nail in the coffin, though, given each company’s status as mammoths within the industry.
NVIDIA and OpenAI Announce Partnership
Announced this week by the two massive AI companies, NVIDIA and OpenAI have entered into a significant partnership with some serious implications for the industry as a whole.
The deal sees $100 billion invested by NVIDIA into OpenAI, which will help the company expand substantially in a way that could have a serious impact on AI development.
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NVIDIA is the world’s largest maker of AI chips and OpenAI is the world’s most recognizable AI company thanks to its creation ChatGPT. As a result, this partnership represents a pairing of two of the largest AI companies in the world.
What Does the Partnership Entail?
This is when things get a bit interesting. The deal states that NVIDIA will invest $100 billion in OpenAI in exchange for non-voting shares in the company. The capital will then be used to buy AI chips from NVIDIA, which will help OpenAI achieve its ambitious goals.
“Everything starts with compute. Compute infrastructure will be the basis for the economy of the future, and we will utilize what we’re building with Nvidia to both create new AI breakthroughs and empower people and businesses with them at scale.” – Sam Altman, CEO of OpenAI
Frankly, the deal is unprecedented in the tech space. With no voting power to go along with its massive investment, NVIDIA seems to be banking on OpenAI as the end-all-be-all of AI, and that its plans to usher in a new era of the technology are achievable.
AI Boom or Bubble Burst?
$100 billion is a lot of money, particularly when it comes to investing in other companies. Many believe this massive influx of cash could point to a serious boom for AI technology, particularly with it being sent between two of the biggest companies in the world.
Still, it’s worth remembering that this partnership is really just two companies trading resources, with very little capital going elsewhere. This could be the sign of a bubble about to burst, the AI companies doing their best to prop each other up before it’s too late.
Suffice to say, the AI industry has seen some unreal investment recently with very little ROI, but the future of the technology is still shrouded in mystery, given it’s still in the very early stages of development.
