Nvidia stock jumps on $100 billion OpenAI investment as Huang touts 'biggest AI infrastructure project in history'

Core Insights - Nvidia announced a partnership with OpenAI involving an investment of up to $100 billion, leading to a 4% increase in its stock price [1] - The partnership will enable OpenAI to utilize "at least 10 gigawatts" of compute capacity from Nvidia's AI systems for training and running future AI models, with the first phase expected to launch in the second half of 2026 [2] - Nvidia's CEO described the collaboration as the largest AI infrastructure project in history, highlighting a decade-long mutual advancement between Nvidia and OpenAI [3] Company Performance - Nvidia's stock closed at $183.61, surpassing its previous record high from August, although it saw a slight dip in premarket trading the following day [4] - The company holds a market capitalization exceeding $4 trillion, making it the world's most valuable company [4] Competitive Landscape - The scale of the OpenAI-Nvidia deal is significant, with the promised 10 gigawatts of compute capacity equating to 4 million to 5 million of Nvidia's GPUs, compared to Meta's 2 gigawatts from its AI data center [5] - Nvidia is rapidly expanding its AI investments, including a recent $5 billion stake in Intel and plans to deploy tens of thousands of AI chips in the UK [6] Industry Trends - Despite concerns about a potential AI bubble, industry experts view Nvidia's investment as a clear indication of the growing demand for AI infrastructure [7] - OpenAI is also securing additional AI data center capacity, having signed a $300 billion deal with Oracle for computing power over the next five years [8]