Nvidia to invest $100 billion in OpenAI to build data centers

Core Insights - Nvidia plans to invest $100 billion in OpenAI, providing significant resources for building data centers utilizing Nvidia's chips [1][2] - OpenAI will progressively receive this investment as it deploys each gigawatt of the planned 10 gigawatts of power for its data centers, with the first center expected to be operational in the second half of 2026 [2] - The partnership is seen as a major advancement in AI infrastructure, with global spending on AI infrastructure projected to reach $375 billion by 2025 [3] Nvidia's Strategic Moves - Nvidia has been central to several significant deals, including a $250 million investment in CoreWeave, which subsequently secured a $6.3 billion agreement with Nvidia for cloud computing capacity [4] - Recently, Nvidia acquired a $5 billion stake in Intel to enhance data center and PC product development, alongside a $500 million investment in Nscale and a $2.7 billion commitment for AI infrastructure in the U.K. [5] Market Dynamics and Demand - There are concerns regarding "circular financing," where Nvidia invests in its major customers who then purchase Nvidia's products, potentially leading to inflated demand estimates [6] - Analysts believe that the demand for AI infrastructure is being underestimated, with projections suggesting that for every $1 invested by Nvidia, it could generate $8 to $10 in revenue over the coming years [7]