Nvidia Doubles Down on AI
Nvidia (NVDA) announced plans to invest $100 billion into OpenAI as part of a 10-gigawatt data center buildout, underscoring its central role in powering next-generation artificial intelligence.
CEO Jensen Huang, appearing with OpenAI’s Sam Altman and Greg Brockman, called the initiative “monumental in size.” He told CNBC that the project equates to 4–5 million GPUs, essentially all the chips Nvidia expects to ship this year — and twice as much as 2024.
The news sent Nvidia shares up nearly 4%, boosting its market capitalization to roughly $4.5 trillion.
OpenAI’s Growing Appetite for Power
OpenAI said the project would roll out “progressively” and rely on Nvidia as a preferred supplier for chips and networking systems. The first phase is expected online in the second half of 2026, using Nvidia’s Vera Rubin platform.
Altman framed the investment as essential to scaling OpenAI’s infrastructure for its 700 million weekly active users.
“We have to do great AI research, make products people want, and solve this unprecedented infrastructure challenge,” Altman said.
Industry Context: The Cost of AI Arms
Building just one gigawatt of data center capacity costs $50B–$60B, according to Huang, with roughly $35B going to Nvidia systems. By that math, the 10-gigawatt OpenAI plan could ultimately reach half a trillion dollars in total costs over time.
The tie-up further tightens the bond between two of AI’s biggest names. Demand for Nvidia GPUs surged after OpenAI released ChatGPT in 2022, and OpenAI still depends on those chips to develop and deploy its models.
As Bryn Talkington of Requisite Capital put it: “Nvidia invests $100 billion in OpenAI, which then turns back and gives it back to Nvidia. It’s going to be very virtuous for Jensen.”
Competitive Pressures Rising
While Nvidia dominates the AI chip market, rivals are circling:
- AMD is pushing its own AI processors.
- Cloud providers like Amazon, Google, and Microsoft are building proprietary silicon.
- Nvidia itself has broadened its portfolio, taking a $5B stake in Intel, investing $700M in U.K. startup Nscale, and spending nearly $1B to hire away Enfabrica talent.
OpenAI’s partnership with Nvidia complements existing alliances with Microsoft, Oracle, SoftBank, and the Stargate project, positioning the firm at the center of the AI infrastructure buildout.
Investor Angle
Nvidia’s $100B pledge signals that AI isn’t slowing down — it’s accelerating. By anchoring itself as the default supplier for OpenAI, Nvidia is effectively locking in billions in recurring demand while competitors scramble to catch up.
But the scale also raises questions: How sustainable are these capital outlays, and what happens if model demand underperforms the hype cycle? With AI data centers rivaling the size and cost of national utilities, execution will be as critical as ambition.
WSA Take
This deal cements Nvidia as the arms dealer of the AI revolution. By writing a $100B check to its biggest customer, the company is ensuring OpenAI’s growth flows directly back to its own bottom line.
The strategy is risky — tying fortunes to one high-burn partner — but it also shows how Nvidia intends to maintain its lead while others experiment with in-house chips. For investors, the bet is clear: Nvidia’s dominance in AI hardware is not just intact, it’s deepening.
If you missed our recent coverage of Gold’s record-breaking rally, it’s a reminder that while AI dominates headlines, commodities are delivering historic moves of their own. For more insights, visit the Wall Street Access homepage.
Disclaimer
Wall Street Access does not work with or receive compensation from any public companies mentioned. Content is for educational and entertainment purposes only.
