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Nvidia CEO Describes OpenAI Deal as the Company’s First ‘Direct Partnership’

Nvidia CEO Describes OpenAI Deal as the Company’s First ‘Direct Partnership’

Nvidia (NVDA) CEO Jensen Huang said his company’s new deal with OpenAI (PC:OPAIQ) marks a major shift in how the two work together. In an interview with CNBC’s Jim Cramer, Huang explained that this is the first time “OpenAI is going to buy directly from us.”

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Until now, OpenAI has purchased Nvidia’s chips through cloud providers like Microsoft (MSFT) Azure, renting computing power instead of buying hardware. This new agreement removes the middleman, a change Huang said will lead to a closer, more direct partnership between the two companies.

Huang added that Nvidia will “help them build an AI infrastructure they operate themselves,” setting up OpenAI to run its own cloud systems in the future.

Nvidia to Invest $100B in OpenAI’s AI Infrastructure

The partnership is large in scale. Nvidia plans to invest up to $100 billion to help OpenAI build data centers dedicated to artificial intelligence. The project will include around 10 gigawatts of computing power, all powered by Nvidia systems.

Huang said the first 1 gigawatt is expected to go online in the second half of 2026. For comparison, 10 gigawatts equals the output of millions of GPUs, showing just how big OpenAI’s next phase of AI development will be.

Huang called the OpenAI deal “incremental” compared to Nvidia’s work with other AI partners such as Oracle (ORCL), CoreWeave (CRWV), and Intel (INTC). He said it’s another step in Nvidia’s growing list of AI collaborations.

Is Nvidia Stock a Buy Right Now? 

Wall Street has a Strong Buy consensus rating on the stock based on 35 Buys, two Holds, and one Sell recommendation. The average NVDA stock price target of $218.14 indicates 17.89% upside potential. 

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