Chipmaker Nvidia (NVDA) and OpenAI announced a strategic partnership that will see Nvidia invest up to $100 billion in the AI firm. Indeed, the companies signed a letter of intent to work together on building OpenAI’s infrastructure by using at least 10 gigawatts of Nvidia systems. This powerful setup will train and run OpenAI’s most advanced models, with the first phase expected to launch in the second half of 2026 on Nvidia’s Vera Rubin platform.
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Unsurprisingly, the agreement makes Nvidia OpenAI’s preferred partner for computing and networking, which means that the two will work closely on both hardware and software to optimize performance. Furthermore, OpenAI CEO Sam Altman stated that computing power will form the “basis for the economy of the future,” and this deal is designed to ensure that OpenAI has the scale it needs to achieve new breakthroughs.
Interestingly, Matt Britzman, a senior equity analyst at Hargreaves Lansdown, explained that Nvidia could see enormous gains from its partnership with OpenAI, since every gigawatt of AI data center capacity translates to about $50 billion in revenue, making the project potentially worth $500 billion. With OpenAI now reaching more than 700 million weekly active users and gaining traction with businesses, the deal shows just how critical Nvidia’s chips and infrastructure are for OpenAI.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 36 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 $211.61 per share implies 15.4% upside potential.
