Jensen Huang explains why Nvidia’s latest partnership with OpenAI is different
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According to CNBC’s Jim Cramer, Jensen Huang, the CEO of Nvidia, said the company has entered its first ever direct partnership with OpenAI, changing how the ChatGPT maker will get its hardware. Jensen explained the deal on Tuesday during the CNBC Investing Club’s Monthly Meeting at the New York Stock Exchange, adding that OpenAI will now buy Nvidia systems straight from the company instead of through cloud providers. “This is a partnership that, for the first time, OpenAI is going to buy directly from us,” Jensen said. “Usually…a cloud service provider buys from us, and they rent from a cloud service provider. And so now it’s going to be a direct partnership.” The deal is backed by numbers that show just how large it is.Nvidia announced in September that it plans to invest up to $100 billion into OpenAI to build out artificial intelligence data centers.Both companies said the systems will require 10 gigawatts of power. Jensen told CNBC that this amount of energy is the same as running between 4 million and 5 million GPUs. That puts OpenAI on track to run its own computing infrastructure rather than relying on someone else’s servers. Nvidia signs direct AI infrastructure deal The partnership comes as both Nvidia and OpenAI are driving the current AI boom. Demand for Nvidia’s chips began three years ago when OpenAI first released ChatGPT, which introduced generative AI to millions of users. Since then, Nvidia’s market cap has more than tripled, reaching over $4 trillion and making it the most valuable company on the market. Jensen told Cramer that the OpenAI deal is “incremental” compared to Nvidia’s earlier partnerships with Oracle and CoreWeave, because this time OpenAI will run its own data centers. “We’re going to help them build an AI infrastructure that they operate themselves ……
Filed under: News - @ October 8, 2025 1:24 am