OpenAI Tie-Up Boosts Hitachi Shares, Fuels Japan Tech Rally

Core Viewpoint - Hitachi Ltd. shares surged by up to 9.9% following the announcement of a strategic partnership with OpenAI, reflecting a trend of increasing collaborations between Japanese tech firms and US AI companies [1][2]. Group 1: Partnership Details - The partnership will focus on Hitachi's energy and power grid operations, cooling equipment, storage, and its digital solutions hub Lumada, as stated by a Hitachi representative [2]. - Hitachi and OpenAI signed a memorandum of understanding on October 2, which was communicated via social media [2]. Group 2: Market Impact - The collaboration with US firms is contributing to a rally in Japan's tech stocks, which has propelled the nation's equity benchmarks to all-time highs [3]. - Fujitsu Ltd. also experienced a share increase of up to 5.7% after expanding its partnership with Nvidia Corp., indicating a broader trend in the tech sector [3]. Group 3: Investor Sentiment - Investors are increasingly recognizing specific projects emerging from the expansion of data centers, moving beyond mere expectations [4]. - SoftBank Group Corp. has seen its stock more than double since announcing its involvement in the Stargate Project with OpenAI and other US tech firms, highlighting the growing investor interest in AI-related initiatives [4]. Group 4: Financial Implications - The partnership with OpenAI could enhance orders for Hitachi's energy segment, which was a significant contributor to the company's earnings in the last fiscal year [5]. - Analysts noted that the potential for data storage equipment supply could also benefit Hitachi's struggling storage unit [5]. Group 5: OpenAI Valuation - OpenAI's valuation reached $500 billion, making it the world's largest startup, following a deal that allowed employees to sell shares [6].