NVDA: Nvidia Stock Soars 4% to New Record at $4.5 Trillion. Huge OpenAI Deal in the Works.

Two AI juggernauts will be working together to build out the sprawling AI real estate. Nvidia pledged to invest $100 billion in OpenAI, which was recently valued at $500 billion.

🤝 Nvidia Bets $100B on OpenAI’s Future

• Nvidia stock NVDA ripped 4% higher Monday after CEO Jensen Huang and OpenAI’s Sam Altman dropped a megaton on CNBC: Nvidia will invest up to $100 billion in OpenAI to fund an unprecedented data center expansion.
• The cash will roll out “progressively as each gigawatt is deployed,” CNBC reported. What it means? Every chunk of new capacity gets a fresh wave of Nvidia’s capital.
• “The stuff that will come out of this superbrain will be remarkable in a way I think we don’t really know how to think about yet,” Altman teased, hinting at AI breakthroughs beyond imagination.

🏗️ The Biggest AI Build Ever

• The partnership plans to build 10 gigawatts of AI infrastructure – that’s enough juice to power millions of homes. Huang called it “the biggest AI infrastructure project in history.”
• More than just a chip deal, this is Nvidia trying to make sure OpenAI becomes the showcase customer for its high-powered GPUs. The demand pipeline? Secured.
• For Nvidia, every batch of servers built is another multi-billion-dollar lock-in for its silicon dominance. For OpenAI, it’s a direct ticket to the forefront of compute power.

🚀 Market Impact: $4.5T Nvidia

• Nvidia’s rally pushed its market cap to nearly $4.5 trillion, extending its lead as the world’s most valuable company. Just to put that in perspective – it’s bigger than Apple and Microsoft combined a few years back.
• Meanwhile, Oracle ORCL recently shot higher on news of a $300 billion OpenAI cloud deal, sending its valuation above $1 trillion for the first time.
• The takeaway: OpenAI has become the gravitational center of the AI trade. If you’re not tied to it, investors wonder if you’ll even matter. OpenAI was recently valued at $500 billion. Any guesses how much they’ll grab in their next valuation round?