Analysts react to Nvidia's $100 billion investment in OpenAI

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buildout of artificial intelligence systems. Keeping OpenAI, which is also exploring its own chip designs, as a key customer could help the company reinforce its dominance as the industry considers rival suppliers.Here are some analyst reactions to the partnership:MATT BRITZMAN, SENIOR EQUITY ANALYST, HARGREAVES LANSDOWN"For Nvidia, the prize is huge — every gigawatt of AI data centre capacity is worth about $50 billion in revenue, meaning this project could be worth as much as $500 billion."By locking in OpenAI as a strategic partner and co-optimizing hardware and software roadmaps, Nvidia is ensuring its GPUs remain the backbone of next-gen AI infrastructure."The market is clearly big enough for multiple players, but this deal underscores that, when it comes to scale and ecosystem depth, Nvidia is still setting the pace — and raising the stakes for everyone else."JACOB BOURNE, TECHNOLOGY ANALYST, EMARKETER"Demand for Nvidia GPUs is effectively baked into the development of frontier AI models, and deals like this should also ease concerns about lost sales in China."It also throws cold water on the idea that rival chipmakers or in-house silicon from the Big Tech platforms are anywhere close to disrupting Nvidia's lead."For OpenAI, it signals greater independence as it continues diversifying away from its Microsoft partnership and races to develop its next-generation models."ANSHEL SAG, PRINCIPAL ANALYST, MOOR INSIGHTS & STRATEGY"I think this strengthens the partnership between the two companies that has existed since the beginning of OpenAI's existence. This also validates Nvidia's long-term growth numbers with so much volume and compute capacity, also enabling OpenAI to scale to even bigger customers."BEN BAJARIN, CEO OF TECHNOLOGY CONSULTING FIRM CREATIVE STRATEGIES"Really the point Nvidia was making was that it's just enabling OpenAI to meet surging demand and, at this point, we know there's surging demand for Nvidia GPUs, because that's primarily what OpenAI runs on."(Reporting by Juby Babu in Mexico City, Kritika Lamba and Arsheeya Bajwa in Bengaluru; Editing by Alan Barona)Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,689.54 +25.18 (+0.38%)Dow 3046,365.92 +50.65 (+0.11%)Nasdaq22,770.11 +138.63 (+0.61%)Russell 20002,457.52 +8.75 (+0.36%)VIX15.93 +0.48 (+3.11%)Gold3,781.80 +76.00 (+2.05%)PortfolioSign in to access your portfolioSign inTop gainersMTSR Metsera, Inc. 53.94 +20.62 (+61.88%)DGNX Diginex Limited 17.94 +4.34 (+31.91%)QMMM QMMM Holdings Limited 103.60 +20.76 (+25.06%)BMA Banco Macro S.A. 47.49 +8.22 (+20.94%)BBAR Banco BBVA Argentina S.A. 9.91 +1.72 (+21.09%)Top losersCOMP Compass, Inc. 7.84 -1.56 (-16.59%)QUBT Quantum Computing Inc. 20.63 -2.65 (-11.37%)FORD Forward Industries, Inc. 27.18 -3.27 (-10.73%)MENS Jyong Biotech Ltd. 58.50 -7.12 (-10.86%)BMNR Bitmine Immersion Technologies, Inc. 55.43 -5.86 (-9.56%)Most activeNVDA NVIDIA Corporation 183.06 +6.46 (+3.66%)SNAP Snap Inc. 8.57 +0.41 (+5.02%)OPEN Opendoor Technologies Inc. 8.85 -0.72 (-7.52%)PLUG Plug Power Inc. 2.4900 +0.3100 (+14.29%)NIO NIO Inc. 6.88 -0.49 (-6.65%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersNVDA NVIDIA Corporation 183.12 +6.52 (+3.69%)MTSR Metsera, Inc. 53.89 +20.56 (+61.72%)PATH UiPath Inc. 13.02 +1.15 (+9.71%)MRNA Moderna, Inc. 26.86 +1.62 (+6.42%)ORCL Oracle Corporation 322.32 +13.66 (+4.43%)Top economic events