"I think that OpenAI is likely going to be the next multi-trillion dollar hyperscale company ... If that's the case, the opportunity to invest before they get there, this is some of the smartest investments we can possibly imagine... We love the opportunity to invest. We don't have to invest, right? And it's not required for us to invest, but they're giving us the opportunity to invest. This this new partnership is about helping OpenAI to build their own self-build AI infrastructure for the first time, right?"
"Last week, NVIDIA and OpenAI announced a partnership where NVIDIA can invest up to $100 billion in the company. Once again, on Wall Street the consensus is split whether this is 'bubble-like' behavior of NVIDIA investing in a company that will use the money simply to buy their products, or a savvy move getting equity in a startup that has 700 million users on its platform."
NVIDIA's stock is up 32% year-to-date and trades near all-time highs after strong performance in 2023 and 2024. NVIDIA and OpenAI announced a partnership allowing NVIDIA to invest up to $100 billion, aimed at helping OpenAI build self-hosted AI infrastructure and collaborating at the chip level. Wall Street opinion remains split: some see rising corporate AI capital spending as supportive, while others question whether AI investments will produce clear ROI. CEO Jensen Huang framed the OpenAI investment as a strategic equity opportunity tied to potential hyperscale growth and discussed NVIDIA's competitive positioning and investor considerations.
Read at 24/7 Wall St.
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