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Nvidia's investment in OpenAI will be in cash, and most will be used to lease Nvidia chips

1. Nvidia's investment in OpenAI could reach $100 billion over time. 2. OpenAI plans to lease Nvidia's GPUs, spreading costs over five years. 3. Initial $10 billion will help OpenAI deploy its first gigawatt of data center. 4. Concerns arise about the sustainability of the AI industry's rapid growth. 5. Nvidia's market cap benefits from substantial GPU sales to major tech companies.

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FAQ

Why Very Bullish?

Nvidia's significant investment and GPU lease provide steady future revenue streams, as seen in previous tech partnerships that significantly increased market valuations.

How important is it?

The deal incentivizes growth in GPU demand, which is pivotal given Nvidia’s market positioning and the projected growth of AI workloads.

Why Long Term?

The multi-year nature of the lease and investment implies sustained financial benefits for Nvidia over an extended period, similar to past technology growth cycles.

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