Overview

• Reuters reported a letter of intent for Nvidia to invest up to $100 billion and deploy at least 10 gigawatts of its systems to power OpenAI’s next-generation AI infrastructure.
• Nvidia told commentators the investment funds would not be used to purchase its own products, addressing questions about potential circular demand.
• Barclays raised its Nvidia price target to 240 and Evercore to 225, citing the deal’s potential to reinforce Nvidia’s role at the core of AI data centers.
• Nvidia shares pulled back from a record intraday high of 184.55 earlier in the week, with the stock briefly slipping below its 50-day moving average before stabilizing near 177.
• Debate continues over circular financing and accounting treatment even as some analysts model outsized economics, including estimates that 10 gigawatts of capacity could translate to as much as $500 billion in revenue.