Nvidia surged after announcing a $100 billion investment into OpenAI to back a historic data center build-out, according to The Wall Street Journal. The move reflects Nvidia’s broader strategy of leveraging its market strength to bolster demand for its chips through strategic investments in partners such as CoreWeave, Intel, and xAI. Analysts note the arrangement effectively offers OpenAI discounted access to GPUs, with NewStreet Research estimating that every $10 billion invested translates to $35 billion in Nvidia chip purchases. The deal boosted Nvidia’s market value by nearly $160 billion and eased doubts about OpenAI’s ability to fund its multibillion-dollar commitments. The deal also lowers OpenAI’s borrowing costs by reducing credit risk, a stark contrast to previous high-interest financing faced by AI startups.
