AI Daily: Nvidia to invest in OpenAI, Oracle in talks with Meta for $20B deal

Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly:

STRATEGIC PARTNERSHIP: OpenAI and Nvidia (NVDA) announced a letter of intent for a landmark strategic partnership to deploy at least 10 gigawatts of Nvidia systems for OpenAI’s next-generation AI infrastructure to train and run its next generation of models on the path to deploying superintelligence. To support this deployment including data center and power capacity, Nvidia intends to invest up to $100B in OpenAI as the new Nvidia systems are deployed. The first phase is targeted to come online in the second half of 2026 using the Nvidia Vera Rubin platform, the companies stated.

“OpenAI will work with Nvidia as a preferred strategic compute and networking partner for its AI factory growth plans. OpenAI and Nvidia will work together to co-optimize their roadmaps for OpenAI’s model and infrastructure software and Nvidia’s hardware and software. This partnership complements the deep work OpenAI and Nvidia are already doing with a broad network of collaborators, including Microsoft, Oracle, SoftBank and Stargate partners, focused on building the world’s most advanced AI infrastructure. OpenAI has grown to over 700 million weekly active users and strong adoption across global enterprises, small businesses and developers. This partnership will help OpenAI advance its mission to build artificial general intelligence that benefits all of humanity. Nvidia and OpenAI look forward to finalizing the details of this new phase of strategic partnership in the coming weeks,” the companies added.

CLOUD COMPUTING DEAL: Oracle (ORCL) is in discussions with Meta (META) for a cloud computing agreement worth roughly $20B, Bloomberg’s Brody Ford and Kurt Wagner report. Under the multiyear pact, Oracle would provide the Facebook parent with computing power for training and deploying AI models, the authors say, citing people familiar with the talks. The total dollar amount may increase and other terms could still change before a final deal is struck, the authors note.

APPROVED AI TOOLS: U.S. government agencies will be permitted to use Meta Platforms’ AI system, Llama, according to a senior administration official, Reuters’ Courtney Rozen reports. As part of the Trump administration’s effort to incorporate commercial AI tools into federal operations, the General Services Administration, the government’s procurement arm, will add Llama to its roster of approved AI technologies, GSA procurement lead Josh Gruenbaum said in an interview ahead of the announcement. GSA has also signed off in recent months on AI tools from Meta’s competitors, including Amazon Web Services (AMZN), Microsoft (MSFT), Google (GOOGL), Anthropic, and Open AI.

JOINT AI, ROBOTICS RESEARCH LAB: The Technology Innovation Institute, the applied research arm of Abu Dhabi’s Advanced Technology Research Council, has joined forces with Nvidia to launch the Middle East’s first Joint Lab dedicated to both artificial intelligence and robotics. This collaboration establishes a first-of-its-kind hub in the region for developing next-generation AI models, robotics platforms, and humanoid technologies that will accelerate innovation across industries, TII and Nvidia said in a statement. The TII-NVAITC Joint Lab will integrate NVIDIA accelerated computing platforms and expertise with TII’s multidisciplinary research in AI, robotics, autonomous systems, and high-performance computing. It is the first NVAITC lab established in the Middle East, marking a significant milestone for the region. Together, the two organizations will accelerate the development of intelligent systems with real-world applications – advancing the field of Physical AI through embodied AI models, state-of-the-art robotics and humanoid stacks, and hardware designed for real-time robotic systems. Research will span robotic learning and control at scale, as well as the development and integration of large language models, including TII’s Falcon family of AI models – among them the Middle East’s first and largest AI models.

GEMINI AI FOR GOOGLE TV: In a blog post, Alphabet introduced Gemini for Google TV. “Everything you already do with Google Assistant still works, but Gemini on Google TV goes beyond simple commands and lets you engage in free-flowing conversations with your big screen,” the company said. “Get help finding the perfect show for whatever mood you’re in, brainstorm a family trip or answer complex homework questions. Just say “Hey Google” or press the microphone button on your TV remote to unlock a new world of possibilities.”