Chipmaking giant Nvidia has announced plans to invest as much as €86bn ($100bn) in artificial intelligence leader OpenAI, in what both firms are calling a “landmark strategic partnership.”

The collaboration will see OpenAI build next-generation data centres powered by Nvidia’s cutting-edge AI processors, at a time when demand for energy and chips to fuel AI development is soaring.

Describing the agreement as “the next leap forward”, Nvidia chief executive Jensen Huang said: “This is a giant project.”

Both Nvidia and OpenAI – the company behind the ChatGPT platform – have been driving forces in the global AI boom.

Huang and OpenAI’s CEO, Sam Altman, recently joined US President Donald Trump during his State Visit to the UK.

Under the terms of the deal, Nvidia will make its investment in stages, receiving equity in OpenAI in return.

OpenAI, for its part, will purchase millions of Nvidia processors, a move expected to deliver billions in revenue for the US-based chipmaker.

Commenting on the circular nature of the partnership, Bryn Talkington, partner at US wealth manager Requisite Capital Management, told CNBC: “Nvidia invests in OpenAI, which OpenAI then turns back and gives to Nvidia.

“I feel like this is going to be very virtuous for Jensen.”

Following the announcement, Nvidia’s share price rose 3.7%, giving the company a market valuation of €3.6 trillion.