Nvidia (NVDA) stock rose Wednesday after the artificial-intelligence chip leader garnered additional business from British data center operator Nscale. TRUMP MARKET MOVES: Will These Be Next U.S. Equity Stakes? Nscale announced that it will provide about 200,000 Nvidia AI processors for Microsoft (MSFT) in Europe and the U.S. Dell Technologies (DELL) is collaborating on the project. The deal is an expansion of Nscale's previous AI infrastructure contract with Microsoft. In its largest project, Nscale will ...

Core Insights - Nvidia will invest up to $100 billion in OpenAI starting in 2026, marking the largest private-company investment on record if the full amount is committed [1][3] - The investment is tied to the deployment of at least 10 gigawatts of Nvidia systems for OpenAI's next-generation AI infrastructure [2][3] - OpenAI will primarily build the infrastructure in the United States using Nvidia's upcoming Vera Rubin platform [4] Investment Details - The first gigawatt of Nvidia systems is expected to be deployed in the second half of next year, with Nvidia committing $10 billion upon this deployment [3][4] - Subsequent investments will be based on OpenAI's valuation, which is currently at $500 billion [4] - The partnership ensures a secured supply of Nvidia hardware for OpenAI, which is crucial for scaling its operations [5][6] Strategic Implications - For Nvidia, this deal secures billions in chip sales and reinforces its position in the AI compute market [6] - OpenAI benefits from a long-term hedge against supply shortages and rising hardware costs, with the Nvidia deal complementing a recent $300 billion contract with Oracle [5][7] - The staged equity commitment from Nvidia reduces execution risk for OpenAI while ensuring access to necessary processors [7] Market Positioning - The partnership signals to the market that compute resources are critical for the pace of generative AI adoption [8] - OpenAI is also exploring custom chips with Broadcom to potentially reduce reliance on Nvidia in the long term, although the current deal keeps Nvidia central to OpenAI's near-term roadmap [8]