Archive · 4 Jan 2026
Nvidia-Groq Deal Fuels AI Valuation Debate
Nvidia and other companies are making big deals to build AI data centers.
Nvidia plans to spend $100 billion to help OpenAI, but only if OpenAI buys a lot of Nvidia chips.
OpenAI also made a deal with AMD, where OpenAI can get a small part of AMD's company if it uses AMD's processors.
These deals are making people talk about how much AI companies are worth and how they get money.
Nvidia plans to invest $100 billion in AI data center capacity for OpenAI, contingent on OpenAI purchasing millions of Nvidia chips.
OpenAI entered a deal with AMD, granting OpenAI warrants for up to a 10% stake in AMD, vesting as it deploys AMD processors.
These deals blur the line between investment and vendor financing, raising questions about AI valuations.
The circular nature of these deals involves companies committing billions to AI infrastructure through interconnected agreements.
The debate on AI valuations is fueled by the significant financial commitments and the structure of these deals.
- Who
- Nvidia, Groq, OpenAI, AMD
- What
- AI infrastructure deals and investments
- When
- September 2025
- Where
- Global
- Why
- To deploy AI data center capacity and secure chip purchases
- Companies Involved
- Nvidia, Groq, OpenAI, AMD
- Deal Announcement
- September 2025
- Investment Amount
- $100 billion
- OpenAI's Stake in AMD
- Up to 10%
- Contingency
- OpenAI's purchase of Nvidia chips