Nvidia’s stock surged approximately 4% on Monday following the announcement of a significant partnership with OpenAI, where the chipmaker plans to invest up to $100 billion. This collaboration is poised to harness “at least 10 gigawatts” of computing power from Nvidia’s AI systems, which will be utilized to train and operate OpenAI’s next-generation artificial intelligence models. The deployment of the initial phase of this computing capacity, using Nvidia’s upcoming Vera Rubin platform, is scheduled for the second half of 2026.
The ambitious project was described by Nvidia CEO Jensen Huang as “the biggest AI infrastructure project in history” during a CNBC interview. He highlighted the historical collaboration between Nvidia and OpenAI, noting their mutual advancements over the past decade, from the development of the first DGX supercomputer to the creation of ChatGPT.
The enormity of the OpenAI-Nvidia partnership stands in stark contrast to other tech initiatives. For perspective, Meta’s ongoing construction of a 4 million square foot AI data center in Louisiana aims to provide around two gigawatts of compute capacity – just a fraction of the output promised by the Nvidia and OpenAI alliance. According to CFRA analyst Angelo Zino, the proposed 10 gigawatts could translate to 4 to 5 million of Nvidia’s GPUs.
Nvidia’s investment and expanding role in AI come on the heels of other strategic moves, including a recent $5 billion stake in Intel and plans to deploy tens of thousands of AI chips throughout the UK. Additionally, the company signed a $6.3 billion agreement with CoreWeave, ensuring the purchase of unsold compute capacity from the AI data center operator.
Analysts have varied perspectives on the sustainability of this AI boom. Carnegie Investment Counsel’s Greg Halter noted that Nvidia’s significant investments reflect a real and growing demand for AI infrastructure, despite some concerns over a potential bubble. Conversely, DA Davidson analyst Gil Luria raised caution regarding OpenAI’s ambitions. He described Nvidia’s new partnership as an indication that it may have become the “investor of last resort” for OpenAI, which has been making substantial commitments that surpass its financial capacities. He pointed to OpenAI’s recent $300 billion deal with Oracle, which aims to secure computing resources over the next five years, as evidence of potential overreach.
Nvidia’s share price movement positioned it to potentially close near its previous record high of over $183, achieved in August. With a market capitalization exceeding $4 trillion, Nvidia has become the most valuable company globally, asserting its dominance in the rapidly evolving AI landscape.
