TLDR
- Nvidia stock jumped 4% Monday after announcing $100 billion OpenAI partnership investment
- Deal includes deploying 10 gigawatts of AI compute capacity starting second half 2026
- Partnership could generate up to $500 billion in revenue according to Bank of America estimates
- Separate $5 billion Intel investment strengthens CPU supply chain and AI PC market position
- Stock hit new record high at $183.61 with market cap exceeding $4 trillion
Nvidia stock surged Monday following news of the chipmaker’s massive partnership with OpenAI. The $100 billion investment represents the largest AI infrastructure project in history according to CEO Jensen Huang.
The collaboration centers on deploying at least 10 gigawatts of compute capacity using Nvidia’s AI systems. This infrastructure will power OpenAI’s next generation ChatGPT models and other AI applications.
NVDA stock closed at $183.61, setting a new all-time record. The 4% gain added roughly $160 billion to the company’s market value, pushing it above $4 trillion.
Project Scale Dwarfs Current Infrastructure
The 10 gigawatt deployment plan requires approximately 4-5 million Nvidia GPUs according to CFRA analyst Angelo Zino. This scale dwarfs existing projects like Meta’s Louisiana data center delivering just 2 gigawatts.
The first phase launches in late 2026 using Nvidia’s upcoming Vera Rubin platform. OpenAI will gain access to massive computing power for training advanced AI models.
Bank of America’s Vivek Arya estimates the deal could generate $500 billion in revenue for Nvidia over time. This projection assumes sustained demand for high-end AI processors.
The partnership builds on a decade-long relationship between the companies. Nvidia provided OpenAI’s first DGX supercomputer that enabled early AI breakthroughs.
Intel Partnership Expands Strategic Options
Nvidia also announced a $5 billion investment in Intel at $23.28 per share. The deal requires regulatory approval but strengthens Nvidia’s CPU supply chain.
Intel will manufacture custom x86 data center CPUs for Nvidia’s AI infrastructure platforms. The partnership also includes x86 system-on-chips with Nvidia RTX GPU chiplets for PCs.
This collaboration gives Nvidia more flexibility in processor sourcing. It also positions the company for growth in AI-powered personal computers.
Carnegie Investment Counsel’s Greg Halter sees the moves as proof that AI infrastructure demand remains strong. However, some analysts express concern about Nvidia’s role as OpenAI’s primary funding source.
DA Davidson’s Gil Luria calls Nvidia the “investor of last resort” for OpenAI’s ambitious spending plans. He notes OpenAI has committed $425 billion across multiple partnerships including Oracle and CoreWeave.
Nvidia’s second quarter revenue jumped 56% to $46.7 billion with data center sales matching that growth rate. The company guided for $54 billion third quarter revenue with gross margins around 73.5%.
