Jensen Huang explains why Nvidia’s newest partnership with OpenAI is completely different

In an interview with CNBC’s Jim Cramer, Nvidia CEO Jensen Huang mentioned his firm’s new deal with OpenAI, saying it is the primary “direct partnership” with the ChatGPT maker.

“It is a partnership that, for the primary time, OpenAI goes to purchase immediately from us,” Huang stated. “Normally…a cloud service supplier buys from us, they usually lease from a cloud service supplier. And so now it should be a direct partnership.”

Nvidia introduced in September it plans to take a position as much as $100 billion in OpenAI to construct out synthetic intelligence information heart capability. The businesses said OpenAI is searching for to construct and deploy Nvidia techniques that require 10 gigawatts of energy. Huang previously told CNBC that 10 gigawatts is the same as between 4 million and 5 million GPUS.

OpenAI and Nvidia are two of the largest drivers of the AI increase. Demand for Nvidia’s chips began to blow up after OpenAI first launched ChatGPT three years in the past — and largely popularized mainstream use of generative AI. Nvidia’s market capitalization has greater than tripled over the previous few years. It has change into probably the most helpful firm available on the market, in addition to the primary inventory ever to prime $4 trillion.

Huang spoke with Cramer on the CNBC Investing Club’s Monthly Meeting, which was held Tuesday afternoon on the New York Inventory Trade. The interview, elements of which additionally aired on the night’s episode of “Mad Cash,” noticed Huang and Cramer additionally discuss China, world commerce and key partnerships with AMD and Intel.

Huang advised Cramer that Nvidia’s OpenAI partnership is “incremental” to the work the corporate has carried out with different AI names resembling Oracle and CoreWeave.

“We’ll assist them construct an AI infrastructure that they function themselves … and actually set them up for, you recognize, 5 years out, when they’ll function their very own cloud anyhow,” Huang stated.

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Disclaimer The CNBC Investing Membership Charitable Belief owns shares of Nvidia.