NVIDIA Dominates AI Chip Market with Strategic Partnerships

Santa Clara, California – NVIDIA Corporation, a leader in graphics processing units (GPUs), continues to reshape the tech landscape as it partners with OpenAI to bolster artificial intelligence (AI) infrastructure.

On November 5, 2025, NVIDIA announced a significant agreement with OpenAI to establish at least 10 gigawatts of computing capacity, a venture that is anticipated to enhance AI application development globally. The collaboration follows NVIDIA’s position as the supplier for over 70% of the world’s fastest supercomputers.

NVIDIA, founded in 1993, has seen considerable growth, having reached a market capitalization of over $4 trillion in July 2025. The company has focused on GPUs, distinguishing itself from traditional central processing units (CPUs) by excelling at parallel processing, which is essential for complex AI operations.

CEO Jen-Hsun Huang emphasized that NVIDIA’s investment will reach up to $100 billion during the partnership’s positive phases. “Our technology is foundational to generative and agentic AI developments,” Huang said.

This partnership arrives amid rising scrutiny from regulatory bodies concerning NVIDIA’s significant market share and the implications of AI technology on society and employment. Just months earlier, NVIDIA faced antitrust investigations, and its French offices were raided as part of an inquiry.

In September 2023, NVIDIA recorded a major milestone, revealing a sharp increase in demand for AI chips due to the success of platforms like OpenAI. Companies are increasingly integrating AI capabilities, and NVIDIA’s products are at the forefront of this technological transition.

The launch of NVIDIA’s CUDA platform in 2006 aimed to innovate GPU-based parallel computing and has propelled the company into a leading role within the AI sector. As the AI bubble expands, analysts predict a continued focus on NVIDIA due to its profit margins and market influence.

With the global push for AI technology, NVIDIA appears strategically positioned for significant advancements and financial growth. “We believe there will be between $3 trillion to $4 trillion in AI infrastructure spending by the end of the decade,” said Colette Kress, NVIDIA’s Chief Financial Officer.