Jensen Huang explains why Nvidia’s latest partnership with Openai is different

In an interview with Jim Cramer of CNBC, Nvidia CEO Jensen Huang discussed the new agreement of his company with OpenAI, saying that this is the first “direct partnership” with the Chatpt manufacturer.

“This is a partnership which, for the first time, Openai will buy directly from us,” said Huang. “Usually … A cloud service provider buys us, and they rent from a cloud service provider. And therefore now it will be a direct partnership.”

Nvidia announced in September that it planned to invest up to $ 100 billion in Openai to strengthen the capacity of the artificial intelligence data center. Companies said OpenAi sought to build and deploy Nvidia systems that require 10 energy gigawatts. Huang previously told CNBC that 10 gigawatts is equivalent to between 4 million and 5 million GPUs.

OPENAI and NVIDIA are two of the largest engines in the AI ​​boom. The demand for NVIDIA fleas began to explode after Openai published Chatgpt three years ago – and largely popularized the dominant use of the generator. Nvidia’s market capitalization has more than tripled in recent years. It has become the most precious market on the market, as well as the first actions to reach 4 dollars.

Huang spoke with Cramer at the monthly meeting of the CNBC Investing Club, which was held on Tuesday afternoon on the New York Stock Exchange. The interview, some of which were also broadcast in the episode of the evening of “Mad Money”, saw Huang and Cramer also discuss China, world trade and key partnerships with Dmla And Intel.

Huang said to be up to Cramer that Nvidia’s OpenAi partnership was “increasing” at work that the company has done with other AI names such as Oracle And Core.

“We are going to help them build an AI infrastructure for which they operate themselves … and prepare them really, you know, at five, when they are going to use their own cloud anyway,” said Huang.

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Notice of non-responsibility The CNBC Investing Club Charitable Trust has actions from NVIDIA.