CEOs Sam Altman and Jensen Huang pulled off one of the biggest deals in tech history just hours before Altman flew to Texas to announce his company’s next big infrastructure project, according to CNBC. Indeed, after a series of urgent negotiations and last-minute contract tweaks, AI giants OpenAI and Nvidia (NVDA) agreed to a $100 billion partnership to build huge AI data centers powered by Nvidia chips. Interestingly, the timing was notable since both men had recently joined President Donald Trump’s state visit to the UK, where the president was briefed on the agreement.
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Under the agreement, Nvidia will invest $10 billion at a time in OpenAI, with each round tied to the company’s valuation as new data centers are completed. The goal is to build sites capable of at least 10 gigawatts of power, with the first expected to launch in late 2026. Although OpenAI named Nvidia as a “preferred” partner, it clarified that it is still working with Microsoft (MSFT), Oracle (ORCL), and SoftBank (SFTBF) through the Stargate project.
For Nvidia, this deal builds on other recent investments, such as $5 billion in Intel (INTC) and $700 million in UK startup Nscale. Unsurprisingly, its dominance in AI chips has made GPUs the most valuable tech in Silicon Valley, helping its market value reach nearly $4.5 trillion. At the same time, OpenAI faces the challenge of meeting skyrocketing demand for computing power while balancing relationships with existing partners.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 37 Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $212 per share implies 18.8% upside potential.
