Nvidia stock jumps on $100 billion OpenAI investment

Nvidia (NVDA) stock jumped nearly 4% on Monday as the chipmaker announced it will invest up to $100 billion in OpenAI as part of a new partnership.

Nvidia said in its announcement that the partnership will allow OpenAI to deploy “at least 10 gigawatts” of compute capacity from the chipmaker’s AI systems to train and run the ChatGPT maker’s next generation of artificial intelligence models. The first phase of that compute capacity utilizing Nvidia’s upcoming Vera Rubin platform is set to come online in the second half of 2026, according to the company.

Read more about Nvidia’s stock moves and today’s market action.

AI apps are widely powered by Nvidia’s AI systems built on its GPUs (graphics processing units), or AI chips, that fill remote data centers across the country.

“NVIDIA and OpenAI have pushed each other for a decade, from the first DGX supercomputer to the breakthrough of ChatGPT,” Nvidia CEO Jensen Huang said in a statement.

The OpenAI-Nvidia deal is an ambitious undertaking for the companies. For reference, Meta’s mammoth 4 million square foot AI data center under construction in Louisiana is set to deliver about two gigawatts of compute capacity — around one fifth of the power OpenAI and Nvidia are promising to deliver.

Nvidia’s OpenAI deal comes as the company rapidly expands its AI investments. Last week, Nvidia took a $5 billion stake in fellow chipmaker Intel (INTC), part of a partnership to use Intel’s CPUs (central processing units) in Nvidia’s AI systems. The AI giant also announced plans to deploy tens of thousands of AI chips across the UK. It also signed a $6.3 billion deal with CoreWeave (CRWV) that guarantees Nvidia will purchase unsold compute capacity from the AI data center operator.

OpenAI, meanwhile, has been moving to secure more AI data center capacity despite concerns over the company’s ability to grow profitably. The tech firm recently signed a $300 billion deal to purchase computing power from Oracle (ORCL) over the next five years, according to the Wall Street Journal.

Nvidia’s jump on Monday put the stock on track to close near its previous record high above $183 in August. The AI chipmaker is the world’s most valuable company, with a market capitalization above $4 trillion.

Nvidia's world headquarters in Santa Clara, Calif. (Getty Images)
Nvidia’s world headquarters in Santa Clara, Calif. (Getty Images) · wellesenterprises via Getty Images

Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.

Click here for the latest technology news that will impact the stock market

Read the latest financial and business news from Yahoo Finance

Source link

Visited 1 times, 1 visit(s) today

Related Article

U.S. Secretary of Health and Human Services Robert F. Kennedy Jr. delivers remarks while U.S. President Donald Trump listens during a press conference to announce a link between autism and childhood vaccines and the use of popular pain medication Tylenol for pregnant women and children, claims which are not backed by decades of science, at the White House in Washington, D.C., U.S., September 22, 2025. REUTERS/Kevin Lamarque

CNN Data Guru Names New Most-Hated Member of Trump’s Cabinet

The more Robert F. Kennedy Jr. does things, the less Americans like him. CNN statistician Harry Enten on Thursday morning revealed that the health secretary scored an alarming -21 approval rating in a new poll taken as he faces backlash over his massive cuts to medical research and moves to limit vaccine access. “The more

25 September 2025
Israeli PM Benjamin Netanyahu still seems to have the unwavering support of President Donald Trump, and the U.S. has done much to shield Israel from censure. (AP)

Israel increasingly facing outrage from West; being shielded by Trump, for now

When Israeli Prime Minister Benjamin Netanyahu addresses world leaders at the United Nations on Friday, it will be at the helm of a country that is increasingly being treated as a pariah, even by some of its longtime allies. Israeli PM Benjamin Netanyahu still seems to have the unwavering support of President Donald Trump, and

25 September 2025
Raging blaze destroys clubhouse, pub at popular New England golf course

Raging blaze destroys clubhouse, pub at popular New England golf course

A raging blaze broke out at a popular New England golf course late Wednesday night, prompting a massive emergency response. Volunteer firefighters responding to a report of a fire at the Sugarbush Resort Golf Club in Warren, Vermont, around 10:30 p.m. found the clubhouse and an attached eatery engulfed in flames, according to Sugarbush Resort.

25 September 2025
Health Check

Dentist reveals alarming new side effect of vaping

Sign up for our free Health Check email to receive exclusive analysis on the week in health Get our free Health Check email Get our free Health Check email Vaping is taking more people to the dentist’s office with tooth decay and gum problems, according to an expert. Dental surgeon Smita Mehra said she has

25 September 2025
Shropshire councillors vote to reject pay rise cancellation

Shropshire councillors vote to reject pay rise cancellation

Adam GreenBBC Radio Shropshire and Rob Triggin Shropshire BBC Councillor Rosemary Dartnall, leader of the Labour group on Shropshire Council, believes accepting the increase is ‘tone deaf’ Councillors in Shropshire have rejected a proposal to have their pay rise cancelled. All 74 councillors receive an allowance of about £14,500, which is due to increase by

25 September 2025