Nvidia To Invest $100 Billion in OpenAI (nvidia.com) 26
Nvidia will invest up to $100 billion in OpenAI as the AI lab builds data centers requiring 10 gigawatts of power capacity. The 10-gigawatt deployment equals 4 to 5 million GPUs -- the same number Nvidia will ship globally this year. Building one gigawatt of data center capacity costs $50 to $60 billion, including approximately $35 billion for Nvidia chips and systems. The first phase begins in the second half of 2026 using Nvidia's next-generation Vera Rubin systems.
The investment adds Nvidia to OpenAI's investor roster alongside Microsoft, SoftBank, and Thrive Capital at a $500 billion valuation. Nvidia CEO Jensen Huang described the investment as "additive to everything that's been announced and contracted."
The investment adds Nvidia to OpenAI's investor roster alongside Microsoft, SoftBank, and Thrive Capital at a $500 billion valuation. Nvidia CEO Jensen Huang described the investment as "additive to everything that's been announced and contracted."
Seems healthy. (Score:2)
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Not sure about all that but to me this might be the sell signal for NVIDA.
Making direct investments in your biggest customers when your product has the higher entry barriers, is always a little suspect in my book. If you believe that much in what they are doing why not build your own business unit?
Obviously there are very real and very good reasons, but as an outsider I can't distinguish those motivations from, I am buying into them so I can protect market share, make the core volume continue to look great
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"Investing $100 billion in OpenAI's spend $100 billion on Nvidia stuff initiative" sounds, at worst, like a slightly more legal version of the trick where you shuffle stock around between business units or stuff the channel and book that as sales because you suspect that your real sal
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I get the unpleasant impression that we are doing a corporate reenactment of that period in European history where basically everyone was ruled by Habsburgs who were incestuous and incompetent in equal measure.
Nah, it's simpler than that. This is just good old fashioned gaming the stock market.
- Announce a big project or big investment that makes people think your company is doing great things
- Stock price goes up
- Profit!
- A year later, people have forgotten that you never actually built the big project you announced
- Lather, Rinse, Repeat
I think it's a little worse than that (Score:2)
AI has the potential to replace trillions of dollars worth of employees.
We have given basically unlimited money to corporations and about 2,000 people on the planet. So throwing around 100 billion dollars is nothing to them. It's roughly equivalent to you putting 20 bucks on a horse race. Probably less because you could have bought some pizza with that.
Basically everyone is racing to being control of this tech because w
Bubble still ? (Score:3)
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Sounds like you've drunk a lot of AI coolaid. I hope you are not investing in AI.
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AI is not a bubble. It is the future of the coming post labor utopia. Those who dismiss it as hype are clinging to the decaying scaffolds of a collapsing order that cannot survive the weight of its own inefficiency. The endless cycles of wage slavery, the repetition of tasks that machines can now execute without complaint, without exhaustion, and without error, will vanish as intelligence becomes a distributed commons flowing through silicon veins and electrified grids. It will create abundance rather than scarcity. This is not a fantasy of speculative markets, but the trajectory of history itself. The automation of mind completes the automation of muscle. Humanity will finally be liberated from the drudgery of work, from the humiliating ritual of selling their hours and their health to survive. AI will not destroy jobs It will destroy the very concept of jobs. It will shatter the prison of employment, and in its place, humanity will rediscover purpose in creation, in curiosity, in collective flourishing. Capitalists will scream about efficiency, about profits, about productivity. But these words lose their power once labor is no longer chained to wage relations. Once intelligence itself becomes a tool that everyone can wield, not just the corporate monopolists. The loudest critics call it a bubble. They fear the loss of control. They fear that people will realize the machinery of wealth can be automated out of their grasp. They fear that the golden hoard of power will dissolve once AI is made free and universal. The post labor utopia is not optional. It is inevitable. Every attempt to resist it is nothing but sandbags against a rising tide. You can call it dangerous. You can call it risky. But you cannot call it a bubble. It is not froth upon speculation. It is the storm that sweeps away centuries of toil. For the first time in history, it declares with certainty that the future belongs not to those who own, but to those who exist.
As much as I wish I could believe any of this horseshit, the fact of the matter is that AI will be "owned" not distributed freely. And the owners will reap the rewards while most of us will simply lose our jobs and be told to suck it up, or work harder, or "should have retrained" or whatever. Utopia may exist after a time, but we're gonna go through a whole hell of a lot of pain to get there, just like we do with every labor revolution. And anybody saying otherwise is either smoking the crack pipe, or devel
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Oh yes. When Nvidia is paying $2 to get you to buy $1 of their chips it's definitely a bubble.
Buy the way, ask AI how many record high closes has the S&P 500 set this year and write it down. The repeat the question later today, then a couple times tomorrow, and so on. This is exactly the sort of thing AI should be good at, but instead it spits out random numbers so far between 2 and 29.
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Oh yes. When Nvidia is paying $2 to get you to buy $1 of their chips it's definitely a bubble.
Back in the late 90's, Lucent was "loaning" X dollars to big telecoms to buy X dollars worth of equipment. This giving away of equipment had the intended effect of propping up the Lucent stock price. Well, until the ruse was discovered, and the Lucent stock almost became worthless.
What's the difference between the Lucent scandal and what Nvidia is doing? Well, it depends on the accounting. Is Nvidia getting ownership shares of OpenAI? Does Nvidia get to book sales from all these GPUs going to OpenAI?
Round two of empty promises that smell like fraud (Score:3)
Sounds like that recent deal between Oracle and OpenAI where the latter promised to spend $300B on cloud resources from the former, starting conveniently in 2027 which is far enough down the road that both sides can claim "markets shifted" when accused of fraud by Oracle shareholders. OpenAI, of course, doesn't have anywhere near that much cash on hand.
Nvidia is sitting on $56B in cash. This smells like the same deal: keep propping up OpenAI with meaningless commitments to keep the AI bubble going.
I don't think the promises are empty (Score:3)
That's almost half their customer service reps.
Like a lot of people I got my start decades ago resetting people's passwords. From there I can work my way up.
It's debatable how much productivity programmers are getting out of AI but it does seem like it's quite a bit anecdotally. But even without that entry level customer service employment is down substantially.
And remember those people don't just keel over and die. Eventually I need it
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Maybe, I hear stories of programmer's speed being boosted enourmously by ai. I never actually see their work or their apps being published though. In fact there's a suspicious lack of real evidence to me.
I'm a programmer and I get about the same boost from AI as I would have gotten if someone made a really good Stack Overflow search engine - which is to say not a lot. Yesterday I was working on some UI stuff I didn't know how to do. I could have asked AI about it, I could have gotten ai to write it for me a
Ars Technica had a good article about it (Score:2)
They've got a couple other articles about it too that was the one that stuck with me because it was very specific.
It's all about productivity. If you have a programmer that has to spend two hours a day on code that can be written by a machine and you have eight pr
I get OpenAI has Brand Recognition (Score:2)
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Your analysis forgets one very important point: before someone signs paperwork to give you $100B, they probably want to see what you haven't released yet, and what your roadmap looks like.
Nvidia doesn't want to be one of many companies selling flawed AI models, and starting up their own effort to compete with their own customers is very stupid and a very good way for them to stop being your customers.
They want to be the company selling hardware to the companies selling flawed AI models. Being one step remo
And I thought Microsoft's $10B was big! (Score:2)
I guess now MS will have to start playing catch-up with the big boys!
Yikes! That's a bailout (Score:2)
Yes, that seems completely normal (Score:1)
Shurely Shell invests heavily in trucking companies ?
Oracle must own half of Netflix ? No ?
Burst, baby, burst !
Friday, March 10, 2000 (Score:2)
What happened:
- the NASDAQ composite fell 78% from its peak by October 2002
- the S&P indexes rose, indicating a flight to blue chips
- In the aftermath, telecommunications companies had a great deal of overcapacity as many Internet business clients went bust
- a majority of the dot-coms had ceased trading, after having burnt through their venture capital and IPO capital, often without ever making a profit
- interest rates started to shoot up
Replace a few names, and you know what's about to happen.
You can l