Nvidia CEO calls it the “next leap forward’ for AI.
Nvidia (NASDAQ:NVDA) has been in dealmaking mode as of late, and on Monday it announced another big one.
The world’s largest company inked a $100 billion partnership with AI-leader OpenAI. Nvidia will invest $100 billion in OpenAI to build out its AI infrastructure and deploy at least 10 gigawatts of NVIDIA systems to train and run its next generation models.
The first phase of this initiative is set to come online in the second half of 2026 using the NVIDIA Vera Rubin platform.
NVIDIA and OpenAI have pushed each other for a decade, from the first DGX supercomputer to the breakthrough of ChatGPT,” Jensen Huang, founder and CEO of NVIDIA, said. “This investment and infrastructure partnership mark the next leap forward — deploying 10 gigawatts to power the next era of intelligence.”
In essence, Nvidia will be OpenAI’s preferred strategic compute and networking partner for its AI growth plans. It complements the work that OpenAI and NVIDIA are already doing for the $500 billion Stargate AI infrastructure project with Microsoft, Oracle, and SoftBank.
OpenAI, through its Chat GPT platform, is the leader in generative AI with over 700 million weekly active users.
“Everything starts with compute,” Sam Altman, co-founder and CEO of OpenAI, said. “Compute infrastructure will be the basis for the economy of the future, and we will utilize what we’re building with NVIDIA to both create new AI breakthroughs and empower people and businesses with them at scale.”
At a Glance: Nvidia & OpenAI
| Category | Nvidia | OpenAI |
|---|---|---|
| Founded | 1993 (Santa Clara, CA) | 2015 (San Francisco, CA) |
| CEO | Jensen Huang | Sam Altman |
| Core Business | GPUs, AI chips, data center platforms | Generative AI models (GPT, DALL·E, etc.), API services |
| Market Cap | $3.1 trillion | Estimated $300–$500B private valuation (2025) |
| Employees | 36,000+ | 3,000+ |
| Famous Products | H100, Blackwell, GeForce, CUDA platform | ChatGPT (700M weekly active users), GPT-4/5 family, DALL·E |
Nvidia gets price target raises
Nvidia stock rose about 4% on the news Monday, but it opened lower on Tuesday morning down about 1%.
Analysts are mostly bullish on the deal for Nvidia. Barclays analysts said it could add at least $35 billion in revenue in the near term. It maintained a buy rating and a $200 price target.
Looking longer term, BofA analysts say the partnership could result in $300 billion to $500 million in revenue over time. They maintained a buy rating and kept the price target at $235 per share.
Also, Evercore boosted its price target for Nvidia to $225 per share, from $214, call Nvidia the AI ecosystem’s “play of choice,” according to the Fly. Evercore also said the Street’s projections are too low. The median price target for Nvidia is $211 per share, which suggests 17% upside.
Along with the Stargate partnership, Nvidia also made a $5 billion investment with Intel to develop data center and PC products. In addition, it struck a deal with CoreWeave (NASDAQ: last week to purchase any excess cloud computing capacity.
Nvidia shares are up 35% year-to-date and is trading at about 52 times earnings and 41 times forward earnings. With these new deals, Nvidia has inserted itself into the center of the AI universe, now more than ever. The stock is expensive, but the growth prospects remain extremely robust.
