Overview
- Nvidia confirmed it will invest up to $100 billion in OpenAI and supply chips under a long‑term pact that includes a letter of intent to deploy at least 10 gigawatts of Nvidia systems starting in 2026.
- Wall Street reacted by pushing Nvidia’s valuation above $4.5 trillion, with analysts citing higher expected AI infrastructure outlays following the OpenAI announcements.
- The planned buildout could require millions of GPUs, with some estimates projecting hundreds of billions of dollars in long‑term revenue tied to these deployments.
- Regulatory filings highlighted customer concentration, as two direct customers accounted for roughly 39% of Nvidia’s second‑quarter revenue, and analysts warned about potential “circular” demand from vendor‑funded purchases.
- CEO Jensen Huang defended the OpenAI bet as a once‑in‑a‑generation opportunity and cautioned that U.S. export controls may have accelerated Chinese rivals, saying domestic competitors are close behind.