Nvidia stock jumps on $100 billion OpenAI investment-brfastnews

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2025-09-23

Nvidia stock jumps on $100 billion OpenAI investment

Nvidia (NVDA) stock jumped nearly 4% on Monday as the chipmaker announced it will invest up to $100 billion in OpenAI as part of a new partnership.

Nvidia said in its announcement that the partnership will allow OpenAI to deploy “at least 10 gigawatts” of compute capacity from the chipmaker’s AI systems to train and run the ChatGPT-maker’s next generation of artificial intelligence models. The first phase of that compute capacity utilizing Nvidia’s upcoming Vera Rubin platform is set to come online in the second half of 2026, according to the company.

AI apps are widely powered by Nvidia’s AI systems built on its GPUs (graphics processing units), or AI chips, that fill remote data centers across the country.

“NVIDIA and OpenAI have pushed each other for a decade, from the first DGX supercomputer to the breakthrough of ChatGPT,” Jensen Huang, Nvidia CEO, said in a statement.

The OpenAI-Nvidia deal is an ambitious undertaking for the companies. For reference, Meta’s mammoth, 4 million square foot AI data center under construction in Louisiana is set to deliver about two gigawatts of compute capacity — around one fifth of the power OpenAI and Nvidia are promising to deliver.

Nvidia’s OpenAI deal comes as the company rapidly expands its AI investments. Last week, Nvidia took a $5 billion stake in fellow chipmaker Intel (INTC), part of a partnership to use Intel’s CPUs (central processing units) in Nvidia’s AI systems. The AI giant also announced plans to deploy tens of thousands of AI chips across the UK, and the company signed a $6.3 billion deal with CoreWeave (CRWV) that guarantees Nvidia will purchase unsold compute capacity from the AI data center operator.

OpenAI, meanwhile, has been moving to secure more AI data center capacity despite concerns over the company’s ability to grow profitably. The company recently signed a $300 billion deal to purchase computing power from Oracle (ORCL) over the next five years, according to The Wall Street Journal.

Nvidia’s jump Monday put the stock on track to close near its previous record high above $183 in August. The AI chipmaker is the world’s most valuable company, with a market capitalization above $4 trillion.