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

In an interview with CNBC’s Jim Cramerand Nvidia Discussing his company’s new CEO Jensen Huang deal with Openai, saying it’s the first “direct partnership” with the maker of ChatGpt.

“This is a partnership that, for the first time, will buy Openai directly from us,” Huang said. “Normally… a cloud provider buys from us, they rent from a cloud provider. Now it will be a direct partnership.”

Nvidia announced in September Plan To invest up to $100 billion in Openai to build AI data center capacity. Companies He said Openai seeks to build and deploy Nvidia systems that require 10 gigawatts of power. Huang He previously told CNBC That 10 gigawatts equals between 4 million and 5 million GPUs.

Openai and Nvidia are two of the biggest drivers in the AI ​​boom. Demand for NVIDIA chips began to explode after Openai first released ChatGPT three years ago — and greatly precipitated mainstream use of generative AI. Nvidia’s market cap has more than tripled over the past few years. It has become the most valuable company on the market, as well as the first stock ever to reach $4 trillion.

Huang spoke with Cramer at CNBC Investment Club monthly meetingheld Tuesday afternoon at the New York Stock Exchange. The interview, portions of which also aired on the evening’s “Mad Money” episode, also saw Huang and Cramer Discusses China and global trade are key Partnerships with AMD and Intel.

Huang told Cramer that the Nvidia Openai partnership is “incremental” to the work the company has done with other AI names like oracle and Koroev.

“We’ll help them build an AI infrastructure that they run themselves… and really prepare them for, you know, five years away, when they’re running their own cloud anyway,” Huang said.

Subscribe now For CNBC’s Investment Club to follow Jim Cramer’s every move in the market.

Disclaimer CNBC Investing Club Charitable Trust owns NVIDIA shares.