1. Nvidia will invest $100bn in OpenAI and provide data center chips. 2. First $10bn investment starts upon definitive agreement for chip purchases. 3. Partnership will deploy at least 10GW of Nvidia chips for AI infrastructure. 4. Nvidia recently invested $5bn into Intel amid ongoing chip market struggles. 5. OpenAI, valued at $500bn, relies on Nvidia for AI computing power.
Nvidia's substantial investment in OpenAI could vastly increase future sales and market share, similar to previous strategic partnerships that propelled tech stocks significantly upward.
The article describes a pivotal partnership that enhances Nvidia's revenue potential, reinforcing its leadership in AI, thus making its stock highly relevant to investors.
The strategic partnership is set to come online in late 2026, creating a sustained demand for Nvidia's chips, reminiscent of their growth during previous AI boom cycles.