Nvidia(US:NVDA) Benzingaยท2025-09-23 11:02Core Insights - Nvidia and OpenAI have announced a significant $100 billion AI infrastructure deal, but concerns have been raised regarding the cost estimates associated with building AI data centers [1][3] - Short-seller Jim Chanos has questioned Nvidia CEO Jensen Huang's projections for the cost of a one-gigawatt AI factory, suggesting they are significantly higher than estimates from other industry players [2][6] Cost Estimates and Projections - Huang's estimate for a 1GW AI factory ranges from $20 to $30 billion, excluding GPU costs, which Chanos argues is much higher than what other companies report [2][6] - The total projected cost for a 1GW facility, according to "Jensen's math," is estimated to be between $60 to $80 billion, with $40 to $50 billion attributed to compute costs, representing potential revenue for Nvidia [3][5] Market Opportunity - The AI data center capacity is expected to grow from 7 GW in 2024 to 82 GW by 2034, reflecting a compound annual growth rate of 28% [4] - For AI workloads specifically, capacity is projected to increase from 44 GW to 156 GW between 2025 and 2030, translating into a potential market opportunity of $6.2 trillion for Nvidia based on Huang's estimates [5][6] Industry Implications - Chanos's skepticism raises critical questions for investors regarding the accuracy of Huang's cost estimates and the potential underestimation of future capital expenditures by data center operators [6][7] - The financial implications suggest that the true costs associated with powering the AI revolution may be higher than currently anticipated, potentially impacting industry margins [7] Investment Performance - A list of AI-linked ETFs shows varying year-to-date and one-year performance, with the Defiance Quantum ETF leading at 28.98% YTD and 72.83% over one year [8]