"Nvidia just announced plans to invest up to $100 billion in OpenAI to help build AI data centers. The deal between the two companies will create 10 gigawatts of AI data centers using Nvidia's chips (which OpenAI needs for the computer to power its AI). This deal sounds pretty sweet to Wall Street - Nvidia's stock jumped 4% after it was announced."
"This deal sounds pretty sweet to Wall Street - Nvidia's stock jumped 4% after it was announced. But it's also a lot of money - and gigawatts. For comparison, the 10 gigawatts Nvidia plans to invest are as much as it expects to ship all year. But it's also just a lot of money - $100 billion is no pocket change, even for these huge companies. The amount of money being talked about for AI investment is, to use a technical financial term, banoodles."
Nvidia announced plans to invest up to $100 billion in OpenAI to help build AI data centers. The investment will create at least 10 gigawatts of AI data centers that use Nvidia's chips to provide compute for OpenAI. Nvidia's stock rose about 4% after the announcement. The 10-gigawatt figure matches Nvidia's expected chip shipments for the year. The scale and cost are unusually large for corporate infrastructure, with commentary labeling the sums as 'banoodles.' In February 2024, Sam Altman reportedly sought up to $7 trillion in the UAE for infrastructure, underscoring massive financing ambitions in the AI sector.
Read at Business Insider
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