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 help 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 suggest that the initial $ 10 billion will be provided after the deal is signed.
A person familiar with the matter said that NVIDIA will invest in cash and in return he will get the equity of Openai. Each gigawatt computing power will be invested as well as further invested. Nvidia also benefited from this deal, after the news, its stock 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 large quantities of electricity.
There will be considerable energy consumption to run 10 GW data centers. The electricity cost of running this data center, the electricity needs of the entire New York city can be met.
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.”