"Nvidia emphasizes that its collaboration with OpenAI will not affect other customers. The chip company is responding to concerns that arose after the announcement of a letter of intent to invest in a massive expansion of AI infrastructure together with OpenAI. The deal was first reported on by Bloomberg. The agreement has a potential value of $100 billion. It revolves around the construction of data centers equipped with Nvidia hardware. Together, these installations"
"Despite this position, Nvidia is still dependent on a limited group of large customers, including Microsoft, Meta, Amazon, and Google's parent company Alphabet. These companies are fiercely competing to build the fastest and most powerful AI infrastructure. At the same time, they are looking for ways to be less dependent on Nvidia. For example, they are working on their own components or looking at alternatives from competitors such as AMD."
Nvidia and OpenAI plan a phased investment to build data centers with Nvidia hardware, targeting at least ten gigawatts of computing power. The agreement has a potential value of $100 billion, with an initial $10 billion available at contract signing and additional capital added per new gigawatt of operational capacity. Nvidia will provide most investment in cash and will receive a stake in OpenAI. Nvidia states the collaboration will not alter how it serves other customers. Strong demand for Nvidia chips has driven record sales and a market value near $4.5 trillion. Major cloud customers remain concentrated and are seeking alternatives or in-house components.
Read at Techzine Global
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