Businesses invest billions in AI infrastructure as demand soars, from OpenAI to Nvidia
Nvidia–Groq Deal Highlights Wave of Mega AI and Cloud Investments
Nvidia has agreed to license technology from AI startup Groq for use in some of its artificial intelligence chips, marking one of its largest deals as it seeks to strengthen its position amid soaring demand for AI hardware. Reports also say Nvidia may acquire Groq’s assets for about $20 billion and hire key engineers, including its CEO.
The deal comes as global technology companies announce a series of multi-billion-dollar investments across artificial intelligence, cloud computing and semiconductor infrastructure.
Amazon is considering an investment of around $10 billion in OpenAI, while Disney plans to invest $1 billion and allow the use of characters from its Star Wars, Pixar and Marvel franchises in OpenAI’s Sora video tool. Broadcom has partnered with OpenAI to help build its first in-house AI processors, while AMD has signed a multi-year agreement to supply AI chips and may allow OpenAI to buy up to a 10% stake.
Nvidia is also set to invest up to $100 billion in OpenAI and supply data-centre chips. Oracle has reportedly signed one of the largest cloud contracts ever, under which OpenAI could purchase up to $300 billion worth of computing power over five years. CoreWeave has signed an $11.9 billion, five-year agreement to provide computing capacity to OpenAI.
A major infrastructure push is underway through the Stargate project, a joint venture of SoftBank, OpenAI and Oracle, which plans to invest up to $500 billion in AI data centres.
Meta has signed several large deals, including a $14 billion agreement with CoreWeave for computing power, talks with Oracle for a cloud deal worth about $20 billion, a six-year cloud agreement of more than $10 billion with Google, and a $14.3 billion investment for a 49% stake in Scale AI.
Nvidia has also expanded partnerships across the ecosystem. A consortium including BlackRock, Microsoft and Nvidia is acquiring Aligned Data Centers in a $40 billion deal. Nvidia will invest $5 billion in Intel, taking about a 4% stake, and its partner CoreWeave placed a $6.3 billion chip order backed by Nvidia guarantees.
Google plans to invest $40 billion in new data centres in Texas by 2027 and will pay $2.4 billion in licensing fees to use technology from AI startup Windsurf. Microsoft has signed a $17.4 billion, five-year agreement with Nebius Group to secure GPU infrastructure.
Other large deals include Tesla’s $16.5 billion agreement with Samsung to manufacture its next-generation AI6 chips, and Amazon’s additional $4 billion investment in AI startup Anthropic.
Together, these deals highlight the rapid escalation of spending on AI chips, cloud infrastructure and data centres as companies race to secure computing power and maintain leadership in artificial intelligence.
