An SEC filing reveals that Nvidia plans to spend $26 billion on open-weight AI models over the next five years. The move doubles as a strategic response to the growing dominance of Chinese open-source models – and a way to keep developers locked into Nvidia’s hardware ecosystem.
Nvidia and Thinking Machines Lab, the AI startup founded by former OpenAI executive Mira Murati, are entering a long-term partnership. Thinking Machines will receive at least one gigawatt of compute power through Nvidia's new Vera Rubin systems to train its own AI models. Deployment is set to begin early next year.
Nvidia has also taken a financial stake in Thinking Machines, though the exact amount wasn't disclosed. The startup had already raised around $2 billion in a seed round led by Andreessen Horowitz, at a valuation of $12 billion. Nvidia was an investor in that round as well. Most recently, Thinking Machines is reportedly seeking another funding round. The startup has also seen some departures - co-founders Barret Zoph and Luke Metz returned to OpenAI.
Together, the two companies plan to develop training and deployment systems for Nvidia hardware and make frontier AI models available to businesses and researchers. Murati left OpenAI in 2024 and co-founded Thinking Machines Lab.
Meta has signed a multi-year, multi-billion dollar contract with Google to rent its AI chips—Tensor Processing Units (TPUs)—for developing new AI models. That's according to The Information. Meta is also looking into buying TPUs outright for its own data centers starting next year.
The deal takes direct aim at Nvidia, which dominates the AI chip market and has been Meta's go-to GPU supplier for AI training. Just days earlier, Meta had announced plans to buy millions of GPUs from Nvidia and AMD. Internally, Google Cloud executives have set a goal of capturing up to ten percent of Nvidia's annual revenue—roughly $200 billion—through TPU sales. Google has also launched a joint venture with an investment firm to lease TPUs to other customers.
Here's where it gets complicated: Google itself is one of Nvidia's biggest customers, since cloud customers still expect access to GPU servers. So Google has to keep buying Nvidia's latest chips to stay competitive in the cloud market, while simultaneously trying to eat into Nvidia's market share with its own silicon. OpenAI reportedly managed to negotiate 30 percent lower prices from Nvidia simply because TPUs exist as an alternative.
Nvidia wants to move robot training out of the real world and into an AI world model. DreamDojo generates simulated futures from video data, no 3D engine required.
Nvidia is close to investing $30 billion in OpenAI, Reuters reports, citing a person familiar with the matter. The investment is part of a funding round in which OpenAI aims to raise more than $100 billion total - a deal that would value the ChatGPT maker at roughly $830 billion, making it one of the largest private fundraises in history.
SoftBank and Amazon are also expected to participate in the round. OpenAI plans to spend a significant portion of the new capital on Nvidia chips needed to train and run its AI models.
According to the Financial Times, the investment replaces a deal announced in September, under which Nvidia was set to provide up to $100 billion to support OpenAI's chip usage in data centers. That original agreement took longer to finalize than expected.
Nvidia is rapidly expanding its partnerships in India. According to CNBC, the chipmaker is working with major venture capital firms to find and fund Indian AI startups. More than 4,000 AI startups in India are already part of Nvidia's global startup program.
At the same time, Indian cloud provider Yotta has invested roughly two billion dollars in Nvidia chips, the Economic Times reports. Nvidia is also partnering with Indian cloud providers to build out data center infrastructure.
The Indian government expects up to 200 billion dollars in data center investments over the coming years. Adani alone is planning to spend 100 billion dollars on AI-capable data centers. These efforts are all part of India's "IndiaAI Mission," a government initiative aimed at turning the country into a global technology powerhouse.
Nvidia CEO Jensen Huang claims in a CNBC interview that AI no longer hallucinates. At best, that’s a massive oversimplification. At worst, it’s misleading. Either way, nobody pushes back, which says a lot about the current state of the AI debate.
