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OpenAI

OpenAI acquires an AI-powered personal investing app

by admin October 4, 2025

Just a day after dethroning SpaceX as the most valuable private company in the world, OpenAI has acquired another startup. This time, the AI giant acquired Roi, an app that offers a one-stop shop for all your financial portfolios and an AI chatbot that provides personalized investing advice. Details of the acquisition weren’t made public, but TechCrunch reported that Sujith Vishwajith, the startup’s CEO and co-founder, will be the only one joining OpenAI’s team.

It might come as a surprise for OpenAI to venture into the personal finance space, but this latest acquisition offers some hints at what the company could have in store for the future. OpenAI could be leaning into an AI chatbot that provides more than just responses to general queries and offers more personalization as a “proactive assistant,” as detailed in its blog post introducing Pulse.

OpenAI is also no stranger to acquiring smaller companies that offer something that could advance ChatGPT. In May, the company acquired io, an AI hardware startup cofounded by former Apple designer Jony Ive, for $6.5 billion. OpenAI followed up that major purchase by spending another $1.1 billion to acquire Statsig, a startup that focused on product testing, in September.

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October 4, 2025 0 comments

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OpenAI Tops SpaceX as World’s Most Valuable Private Company With $500 Billion Valuation

by admin October 3, 2025

In brief

OpenAI’s $6.6 billion employee share sale valued the firm at $500 billion.
The Sale makes OpenAI the world’s most valuable private company, topping SpaceX.
Secondary deal aids staff retention amid Meta’s nine-figure pay offers.

OpenAI has overtaken SpaceX to become the world’s most valuable private company after a $6.6 billion employee share sale at a $500 billion valuation—the milestone underscoring the investor frenzy fueling the artificial-intelligence boom.

According to a Bloomberg report, the secondary sale lets current and former staff who had held shares for at least two years sell stock to a handful of companies, including Thrive Capital, SoftBank Group, Dragoneer Investment Group, Abu Dhabi’s MGX, and T. Rowe Price.

The deal marks OpenAI’s second major tender offer in under a year, following a $1.5 billion SoftBank transaction last November. In January, the Japanese conglomerate was reportedly in talks to earmark up to $25 billion for OpenAI.

SoftBank’s U.S.-traded shares (SFTBY) rose 1.7% to $66.04 on Thursday after news of the OpenAI share sale, reflecting investor enthusiasm for its AI-linked deals.

The $500 billion figure reflects a steep rise for OpenAI from earlier in the year, when the ChatGPT developer was valued at $300 billion following a $40 billion funding round led by Softbank in March. With this latest move, the company now sits ahead of SpaceX—whose own valuation is estimated near $400 billion—putting OpenAI at the top of the private company universe.

Despite scrutiny around the rollout of GPT-5, investor confidence remains undimmed. In September, OpenAI and Nvidia unveiled a strategic infrastructure partnership: OpenAI plans to deploy at least 10 gigawatts of Nvidia systems, and Nvidia will invest up to $100 billion progressively as each gigawatt is deployed. Jensen Huang described it as part of “bringing AI infrastructure from the labs into the world.”

It also coincides with the ongoing Stargate partnership between OpenAI, Softbank, and Oracle to build out America’s AI infrastructure backed by the Trump Administration.

The sale also gives employees liquidity that could help the company fend off nine-figure pay packages from rivals such as Meta, which is aggressively hiring for its new Superintelligence Labs.

The timing also coincides with structural moves at OpenAI. The company lifted its capped-profit limit in May, all the while facing continued legal pressure from Elon Musk. An OpenAI co-founder, Musk has sued the company on multiple occasions. Musk has accused OpenAI of abandoning its original nonprofit mission and allegedly attempting to steal xAI data and trade secrets.

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October 3, 2025 0 comments

An AI-generated Goku fires an energy beam off-screen.

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OpenAI Boldly Uses Copyrighted Characters Like Pikachu In Sora 2

by admin October 2, 2025

Generative AI continues to plague every creative industry you care about, and despite the obvious copyright infringement and legal cases that surround it, companies like OpenAI keep training their models on licensed art. Sora, OpenAI’s video generation model, launched its updated “Sora 2” model on September 30. The app trains itself on copyrighted material by default, with the burden on copyright holders to actively opt out of it. As a result, there’s a lot of AI-generated slop leaking out onto the internet featuring huge characters you know and love.

I tested the AI model Sora 2 on classic anime, the result is hardly believable…

I can already see the hundreds of fanmades and parodies that are going to come out! Sora 2 is definitely a new step in AI anime.. pic.twitter.com/npWkSJjjML

— Naegiko (@naegiko) September 30, 2025

I am not going to be posting a ton of these or anything but just to get extent of the capabilities and copyright violations of Sora 2, here’s Zagreus riding a scooter through hell (sound on) pic.twitter.com/zCCNNppQ0k

— Paul Tassi (@PaulTassi) October 1, 2025

404 Media has some videos of Pikachu and what appears to be a Nazi version of SpongeBob SquarePants doing everything from ASMR to boxing matches. By default, Sora 2 can generate animated videos of almost any copyrighted material you prompt it with because genAI companies seem to think the rules governing how copyright IP is typically handled don’t apply to them. So now, companies like Nickelodeon and Nintendo will have to hit OpenAI up to tell the company to stop using their characters and iconography, rather than the other way around. It’s a bold strategy considering that Disney, NBC, and Warner Bros. are all suing Midjourney for using characters from their IP. Artists who work on the Magic: The Gathering card game have also sued Midjourney for scraping their artwork to train the generative AI model.

The Pokémon Company may not be taking immediate action against the Department of Homeland Security for using its characters in a video posted to social media, but I can’t imagine the litigious company is going to sit by while Pikachu’s image is used in AI slop that puts the mascot in a bad light. We’ve reached out to The Pokémon Company, Supergiant Games, and Toei Animation about their respective characters appearing in videos generated by the app.

On top of the slop featuring copyrighted characters, Sora 2 seems to let people make deepfakes of themselves or public figures. The new app has a TikTok-like feed that lets you endlessly scroll through the generated videos, and if you scroll long enough, you might see deepfakes of real people, despite OpenAI claiming it has safeguards in place to protect people from this. Some have even reported seeing some wild shit, like a blackface version of actor Scarlett Johansson performing in the musical Hamilton. OpenAI notably got into legal hot water with the actor last year when the company was using a voice that sounded very similar to her performance as an AI in the movie Her for its own ChatGPT AI chatbot.

I literally have seen someone posting on Twitter a version of Hamilton where Scarlett Johansson is in it.

On top of this likely costing OpenAI a dollar a second to generate, they are potentially going to get sued into a fine paste by multiple different parties

— Ed Zitron (@edzitron.com) 2025-09-30T23:13:44.116Z

The entire thing seems like a series of legal battles in the making, but it also has some artists and animators disheartened as the possibility looms that animation companies may be increasingly inclined to use it to cut costs at the expense of a human touch.

Man, sometimes i feel like giving up as a real animator when I look at this.
AI animation is advancing way faster than I expected. I knew it was coming, but not at this speed. In five years, it might be impossible for real animators to keep up. Honestly…holy shit. I’m genuinely… https://t.co/GIxgbIi97i

— Devil Artemis Animation (@DevilArtemisX) October 2, 2025

don’t let shit like this make you give up on pursuing art/animation

no matter what AI can do, nothing can take away the satisfaction/pride of knowing the work you’ve created was made entirely by your own hands.

and not because you wrote a quick little prompt on a keyboard https://t.co/TjiTfaf3g8

— kornkob🇦🇺🇱🇦 COMMS OPEN 3 SLOTS (@imkornkob) October 2, 2025

Personally, I think that even if these videos look better than they did a year ago, they still look like shit. Even the more fluid, action-packed scenes Sora generates still have clear tells of AI generation, like unnatural shifts and glitches in the animation. But for any who hope to use this to cut costs, quality is probably not a priority. Bigwigs who insist that AI is the future only do so because they’re the ones who stand to benefit from it, while the artists who create and the people who enjoy their work get the short end of the stick. Maybe some of IP lawyers will step in and try to put a stop to it all, but it sometimes feels like every time one AI slop machine gets taken down, another one sprouts up in its place.

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October 2, 2025 0 comments

Product Reviews

OpenAI Is Preparing to Launch a Social App for AI-Generated Videos

by admin September 29, 2025

OpenAI is preparing to launch a stand-alone app for its video generation AI model Sora 2, WIRED has learned. The app, which features a vertical video feed with swipe-to-scroll navigation, appears to closely resemble TikTok—except all of the content is AI-generated. There’s a For You–style page powered by a recommendation algorithm. On the right side of the feed, a menu bar gives users the option to like, comment, or remix a video.

Users can create videoclips up to 10 seconds long using OpenAI’s next-generation video model, according to documents viewed by WIRED. There is no option to upload photos or videos from a user’s camera roll or other apps.

The Sora 2 App has an identity verification feature that allows users to confirm their likeness. If a user has verified their identity, they can use their likeness in videos. Other users can also tag them and use their likeness in clips. For example, someone could generate a video of themselves riding a roller coaster at a theme park with a friend. Users will get a notification whenever their likeness is used—even if the clip remains in draft form and is never posted, sources say.

OpenAI launched the app internally last week. So far, it’s received overwhelmingly positive feedback from employees, according to documents viewed by WIRED. Employees have been using the tool so frequently that some managers have joked it could become a drain on productivity.

OpenAI declined to comment.

OpenAI appears to be betting that the Sora 2 app will let people interact with AI-generated video in a way that fundamentally changes their experience of the technology—similar to how ChatGPT helped users realize the potential of AI-generated text. Internally, sources say, there’s also a feeling that President Trump’s on-again, off-again deal to sell TikTok’s US operations has given OpenAI a unique opportunity to launch a short-form video app—particularly one without close ties to China.

OpenAI officially launched Sora in December of last year. Initially, people could only access it via a web page, but it was soon incorporated directly into the ChatGPT app. At the time, the model was among the most state-of-the-art AI video generators, though OpenAI noted it had some limitations. For example, it didn’t seem to fully understand physics and struggled to produce realistic action scenes, especially in longer clips.

OpenAI’s Sora 2 app will compete with new AI video offerings from tech giants like Meta and Google. Last week, Meta introduced a new feed in its Meta AI app called Vibes, which is dedicated exclusively to creating and sharing short AI-generated videos. Earlier this month, Google announced that it was integrating a custom version of its latest video generation model, Veo 3, into YouTube.

TikTok, on the other hand, has taken a more cautious approach to AI-generated content. The video app recently redefined its rules around what kind of AI-generated videos it allows on the platform. It now explicitly bans AI-generated content that’s “misleading about matters of public importance or harmful to individuals.”

Oftentimes, the Sora 2 app refuses to generate videos due to copyright safeguards and other filters, sources say. OpenAI is currently fighting a series of lawsuits over alleged copyright infringements, including a high-profile case brought by The New York Times. The Times case centers on allegations that OpenAI trained its models on the paper’s copyrighted material.

OpenAI is also facing mounting criticism over child safety issues. On Monday, the company released new parental controls, including the option for parents and teenagers to link their accounts. The company also said that it is working on an age-prediction tool that could automatically route users believed to be under the age of 18 to a more restricted version of ChatGPT that doesn’t allow for romantic interactions, among other things. It is not known what age restrictions might be incorporated into the Sora 2 app.

This is an edition of the Model Behavior newsletter. Read previous newsletters here.

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September 29, 2025 0 comments

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Elon Musk’s xAI Sues OpenAI Again, This Time Over Alleged Trade Secret Theft

by admin September 26, 2025

In brief

Elon Musk’s xAI has sued OpenAI, alleging it induced former employees to steal source code and data center deployment strategies.
The AI company alleges OpenAI targeted employees with knowledge of its “secret sauce” data center operations, with one executive refusing to sign confidentiality documents after leaving for OpenAI.
One engineer allegedly admitted in a “handwritten confession” to misappropriating code after encrypted communications with an OpenAI recruiter.

Elon Musk’s artificial intelligence company xAI filed a federal lawsuit on Wednesday against OpenAI, accusing its rival of orchestrating a “coordinated, unfair, and unlawful campaign” to steal proprietary technology through targeted employee poaching.

The complaint, filed in California, alleges OpenAI “by hook or by crook” induced former xAI employees to misappropriate the company’s entire source code, training methods, and data center deployment strategies.

Musk, a co-founder of OpenAI alongside Sam Altman, Greg Brockman, Illya Sutskever, and others in 2015, stepped down from the board in 2018, citing conflicts of interest with his company, Tesla, and its self-driving cars. Since then, the tech billionaire has assumed a combative stance against OpenAI, including filing a separate lawsuit last month.

OpenAI recruiter Tifa Chen simultaneously targeted multiple xAI employees, offering multi-million dollar packages to engineers who then stole source code and uploaded it to personal devices within hours of their communications, the lawsuit alleges.

Xuechen Li, an early xAI engineer, allegedly “uploaded the entire xAI source code base to a personal cloud account” in July 2025, and later “admitted in a handwritten confession” that he misappropriated xAI’s code and presentation materials on training techniques.

The lawsuit details timestamps showing Li’s code theft occurred within hours of encrypted Signal messages with Chen, who allegedly responded “no way!” after Li copied the files, before OpenAI extended its multi-million dollar offer.

Jimmy Fraiture, another early xAI engineer, allegedly “used the AirDrop feature to transfer” confidential source code “at least five times” after signing with OpenAI, stealing “the majority of xAI’s code” he oversaw, plus experimental folders from four co-founders.

An unnamed senior finance executive who left for OpenAI allegedly called these operations xAI’s “secret sauce,” saying, “The data center team. Their speed and precision blew me away. I would NEVER want to compete against them.”

The executive then took a lesser role at OpenAI, focused on data center spending strategy even though he had no prior AI experience, and when confronted about confidentiality obligations, allegedly “responded with crude sexual expletives” and refused to sign termination documents.

Navodaya Singh Rajpurohit, legal partner at Coinque Consulting, told Decrypt the case “leans heavily on employee poaching,” noting that whether it crosses from aggressive recruiting to unlawful misappropriation “will depend on evidence not included in the filing,” and that “hiring alone is rarely enough to prove trade-secret misuse.”

Ishita Sharma, managing partner at Fathom Legal, told Decrypt that xAI must define its “secret sauce” broadly, grouping GPU racking, vendor contracts, pricing curves, and orchestration playbooks, which, she noted, can be described “by the results they deliver — like faster deployment or cheaper scaling, without putting the exact technical diagrams or formulas on the record.”

Sharma said “the recruiter angle is trickier,” since liability depends on whether recruiters acted as agents of OpenAI with the company’s knowledge.

For OpenAI’s defense, she explained, the strongest approach would be to show independent creation through “time-stamped records: internal Git commits, R&D notes, supplier invoices, and emails,” with earlier documentation providing the most credibility.

xAI seeks damages, restitution, and injunctions requiring OpenAI to purge xAI material from its systems and even destroy models built with it.

The lawsuit adds to Musk’s ongoing legal battle with OpenAI, as last month, his companies filed an antitrust suit against Apple and OpenAI, claiming their exclusive iPhone integration creates unfair market dominance.

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September 26, 2025 0 comments

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Nvidia pours $100 billion into OpenAI and supplies millions of chips, raising fresh questions about competition and market concentration

by admin September 25, 2025

Nvidia commits $100 billion to OpenAI while reinforcing demand for its hardware
Partnership builds massive data centers and fuels concerns over circular investment structures
Analysts warn deal may raise antitrust scrutiny as Nvidia strengthens AI dominance

Following its recent surprise $5 billion Intel deal, Nvidia is spending big again, this time committing up to $100 billion to OpenAI alongside supplying millions of its chips.

The move fits a broader pattern in which Nvidia channels money into businesses that rely on its own hardware, from $6.3 billion in CoreWeave to $700 million in nScale, effectively reinforcing demand for its products while bypassing hyperscalers like Google and Microsoft which are racing to reduce their dependence on Nvidia’s hardware.

This latest investment into the world’s best-known AI firm immediately lifted Nvidia’s market value by more than $220 billion.

Circular structure

The deal involves a circular structure and will see Nvidia will buy non-voting shares in OpenAI, which OpenAI will then spend mostly on Nvidia systems.

Citing people familiar with the matter, Reuters says the partnership will begin with a $10 billion investment and scale as OpenAI deploys more computing power.

“This is the biggest AI infrastructure project in history,” Nvidia founder and CEO Jensen Huang said in an interview with CNBC’s Jon Fortt. “This partnership is about building an AI infrastructure that enables AI to go from the labs into the world.”

He said the companies will build data centers capable of running next-generation AI models, powered by Nvidia’s new Vera Rubin platform.

The first data centers are due online in 2026 and require 10 gigawatts of power, roughly equal to the needs of 8 million US households.

OpenAI chief executive Sam Altman said the capacity was essential for the company’s ambitions.

“Building this infrastructure is critical to everything we want to do,” Altman said. “This is the fuel that we need to drive improvement, drive better models, drive revenue, drive everything.”

xAI accuses OpenAI of stealing its trade secrets in new lawsuit

by admin September 25, 2025

Elon Musk’s xAI is suing OpenAI, alleging that the ChatGPT maker has stolen its trade secrets. The lawsuit comes after the company recently sued a former employee, Xuechen Li, for allegedly stealing confidential information from the company before taking a job at OpenAI.

In its latest lawsuit, which was reported by Sherwood, xAI says that Li’s alleged actions are part of “a broader and deeply troubling pattern of trade secret misappropriation, unfair competition, and intentional interference with economic relationships by OpenAI.” According to xAI’s lawyers, OpenAI also hired two other xAI employees who stole proprietary information from Musk’s company.

“Another early xAI engineer—Jimmy Fraiture—was also harvesting xAI’s source code and airdropping it to his personal devices to take to OpenAI, where he now works,” the lawsuit states. “Meanwhile, a senior finance executive brought another piece of the puzzle to OpenAI—xAI’s ‘secret sauce’ of rapid data center deployment—with no intention to abide by his legal obligations to xAI.”

OpenAI didn’t immediately respond to a request for comment on the lawsuit. Musk, of course, has a complicated history with the ChatGPT maker, and this isn’t the first time his rival AI company has sued OpenAI. Last month, xAI filed lawsuits against OpenAI and Apple over Grok’s placement on App Store charts. Musk alleged that ChatGPT rank in the top spot represented an “unequivocal antitrust violation.” Musk has also filed numerous lawsuits against OpenAI over its relationship with Microsoft and its move to become a for-profit company.

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September 25, 2025 0 comments

Product Reviews

Meta Poaches OpenAI Scientist to Help Lead AI Lab

by admin September 25, 2025

Mark Zuckerberg has poached a high-ranking OpenAI researcher to be the research principal of Meta Superintelligence Labs (MSL). Yang Song, who previously led the strategic explorations team at OpenAI, is now reporting to Shengjia Zhao, another OpenAI alum who has overseen the buzzy AI effort since July, according to multiple sources. He started earlier this month.

The move comes after Zuckerberg went on a hiring blitz earlier this summer, bringing in at least 11 top researchers from OpenAI, Google, and Anthropic.

Song had been at OpenAI since 2022. His research there focused on improving models’ ability to process large, complex datasets across different modalities. While still a graduate student at Stanford University, he developed a breakthrough technique that helped inform the development of OpenAI’s DALL-E 2 image generation model. Both he and Zhao attended Tsinghua University in Beijing as undergraduates, and worked under the same advisor, Stefano Ermon, while pursuing PhDs at Stanford.

In a staff-wide memo sent this summer, Zuckerberg touted Zhao’s impressive resume as the cocreator of ChatGPT, GPT-4, all mini models, 4.1, and o3 at OpenAI—but he did not specify Zhao’s new role at Meta. In July, Zuckerberg wrote in a Threads post that while Zhao had “cofounded the lab” and “been our lead scientist from day one,” Meta had decided to “formalize his leadership role” as the lab’s chief scientist. The move came after Zhao threatened to return to OpenAI, even going as far as to sign employment documents, WIRED previously reported.

A small number of researchers have left Meta Superintelligence Labs since the initiative was first announced in June. Two staffers have returned to OpenAI, WIRED previously reported. One of these researchers went through onboarding but never showed up for their first day of work at Meta.

Another AI researcher, Aurko Roy, also left Meta in July, WIRED has learned. He’d worked at the tech giant for just five months, according to his personal website, which also says he now works on Microsoft AI. Roy did not immediately respond to a request for comment from WIRED. Yang Song, OpenAI, and Meta also did not immediately respond to a request for comment from WIRED.

Song joins an already crowded field of big-name AI talent within Meta’s increasingly complicated AI division. When Zhao was hired in July, some speculated that he had replaced Yann LeCun, Meta’s longstanding chief AI scientist. In a LinkedIn post, LeCun clarified that he remained chief AI scientist for Facebook AI Research (FAIR), the company’s longstanding foundational AI research lab.

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September 25, 2025 0 comments

Product Reviews

OpenAI Teams Up With Oracle and SoftBank to Build 5 New Stargate Data Centers

by admin September 23, 2025

OpenAI is planning to build five new data centers in the United States as part of the Stargate initiative, the company announced on Tuesday. The sites, which are being developed in partnership with Oracle and SoftBank, bring Stargate’s current planned capacity to nearly 7 gigawatts—roughly the same amount of power as seven large-scale nuclear reactors.

“AI is different from the internet in a lot of ways, but one of them is just how much infrastructure it takes,” OpenAI CEO Sam Altman said during a press briefing in Abilene, Texas, on Tuesday. He argued that the US “cannot fall behind on this” and the “innovative spirit” of Texas provides a model for how to scale “bigger, faster, cheaper, better.”

Three of the new sites, in Shackelford County, Texas; Doña Ana County, New Mexico; and a yet-to-be-disclosed location in the Midwest, are being developed in partnership with Oracle. The move follows an agreement Oracle and OpenAI announced in July to develop up to 4.5 gigawatts of US data center capacity on top of what the two companies are already building at the first Stargate facility in Abilene.

OpenAI claims the new data centers, along with a planned 600 megawatt expansion of the Abilene site, will create more than 25,000 onsite jobs, though the number of workers required to build data centers typically dwarfs the amount needed to maintain them afterwards.

The two remaining sites are being helmed by OpenAI and SB Energy, a SoftBank subsidiary that develops solar and battery projects. These are located in Lordstown, Ohio, and Milam County, Texas.

Stargate is one of several major US technology infrastructure projects that have been announced since President Donald Trump took office at the start of the year. OpenAI said in January that the $500 billion, 10 gigawatt commitment between the ChatGPT maker, SoftBank, Oracle, and MGX would “secure American leadership in AI” and “create hundreds of thousands of American jobs.”

Trump touted the mammoth initiative just two days after he returned to the White House, promising that it would accelerate American progress in artificial intelligence and help the US compete against China and other nations. In July, Trump announced an AI action plan that called for speedy infrastructure development and limited red tape as the US tries to beat other countries in the quest for advanced AI. “We believe we’re in an AI race,” White House AI czar David Sacks said at the time. “We want the United States to win that race.”

OpenAI initially framed Stargate as a “new company” that would be chaired by Softbank CEO Masayoshi Son. Now, however, executives close to the project say it’s an umbrella brand name used to refer to all of OpenAI’s data center projects—except those developed in partnership with Microsoft.

The flagship site in Abilene is primarily owned and operated by Oracle, with OpenAI acting as the primary tenant, according to executives close to the project. The buildout, which is being managed by the data center startup Crusoe, is on track to be completed by mid-2026, sources close to the project say. It is already running on Oracle Cloud Infrastructure and supporting OpenAI training and inference workloads, those sources add.

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September 23, 2025 0 comments

(L to R): OpenAI President Greg Brockman, NVIDIA Founder and CEO Jensen Huang, and OpenAI CEO Sam Altman are seen standing side by side.

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Nvidia plans to splash OpenAI with cash, pouring out $100 billion for ChatGPT’s creator and making last week’s Intel investment look like a drop in the money bucket

by admin September 23, 2025

Big tech is capable of throwing around some eye-watering amounts of cash. As you may recall, Nvidia announced $46.7 billion total revenue during its Q2 2025 earnings call. That’s not just a lot of moolah, but serious spending power.

As such, this week, Nvidia announced it will be investing $100 billion into OpenAI. Part of this mountain of money will go towards supplying the steward of ChatGPT with data centre chips. Details have yet to be finalised, but a letter of intent signed by the two companies announced plans to deploy 10 gigawatts of Nvidia systems for use in OpenAI’s data centres.

The two companies were hardly strangers to begin with, but this latest deal gives Nvidia a stake in one of its biggest customers. Nvidia’s investment in OpenAI will eventually take the form of non-voting shares in the company. OpenAI will then use the resulting cash flow to buy the aforementioned AI chips. Ultimately, this latest pledge of $100 billion makes last week’s surprising news that Nvidia would be putting $5 billion into Intel look like a drop in the bucket.

Once this most recent deal is finalised, sources close to the company claim the plan is for Nvidia to invest an initial sum of $10 billion, followed by a hardware rollout sometime towards the end of 2026. The first gigawatt of power will likely take to the stage of Nvidia’s upcoming Vera Rubin AI compute platform, which was first revealed back in March.

OpenAI CEO Sam Altman explained in a statement that it was all about maintaining a competitive edge in an increasingly crowded field, saying, “Everything starts with compute. Compute infrastructure will be the basis for the economy of the future, and we will utilize what we’re building with Nvidia to both create new AI breakthroughs and empower people and businesses with them at scale.”

But Nvidia spending money on OpenAI so OpenAI can then buy Nvidia hardware has raised some concerns; if this flow of cash looks a little circular to you, you’re not the only one concerned about the potential shape of things to come.

Speaking to Reuters, Bernstein analyst Stacy Rasgon commented, “On the one hand this [deal] helps OpenAI deliver on what are some very aspirational goals for compute infrastructure, and helps Nvidia ensure that that stuff gets built. On the other hand the ‘circular’ concerns have been raised in the past, and this will fuel them further.”

Though that said, it’s perhaps too early to start throwing around words like ‘antitrust,’ particularly as the US Trump administration is all in on AI. Still though, the proposed 10 gigawatt data centres will demand power equivalent to the needs of 8 million U.S. households; despite Nvidia CEO Jensen Huang’s suggestion that AI customers ‘pace themselves’ and other major big tech players looking to nuclear to meet AI’s power demands, there may come a time when such a power imbalance can no longer be ignored.

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September 23, 2025 0 comments

OpenAI

In brief

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In brief

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Circular structure

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