Chip manufacturer Nvidia will make a big investment in the leading AI company Openai. The company will invest $ 100 billion (about ₹ 8815 billion) in Openai, which will be used to create new data centers and other artificial intelligence infrastructure. Both companies have taken this decision in view of the increasing demand for AI. Openai and NVIDIA announced the agreement on Monday. He said that he has signed a letter of intent for a strategic deal. The purpose of this investment is to help Openai a data center. NVidia will aid in creating data centers with at least 10 gW capacity.
How will Nvidia invest?
These data centers will be equipped with advanced chips of NVIDIA, which will be used to train and deploy AI. Nvidia will provide this funding in stages. Reports show that the initial $ 10 billion will be provided after signing the deal.
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A person acquainted with the case said that NVidia will make this investment in cash and in return will get the equity of OpenAI. Each gigawatt computing power will be further invested. The deal also benefited Nvidia in the stock market, and after the news, the company’s shares increased by 3.9%.
What will be achieved by this partnership?
The two companies will jointly create data centers that will help in the development of new generation AI tools. This entire process will require advanced chips, servers, cooling systems and adequate amounts of electricity. There is a lot of energy consumption to run a 10 gigawatt capacity data center. The electricity spent in running this data center can meet the power needs of the entire New York city. Nvidia CEO Jensen Huang said, “This investment and sharing of infrastructure are the next step towards the creation of a 10 GW data center that will speed up the next era of intelligence.”
