Nvidia’s $100 Billion OpenAI Partnership Signals Major AI Infrastructure Expansion

Nvidia's stock surged following its landmark $100 billion partnership with Microsoft-backed OpenAI. The deal establishes Nvidia as OpenAI's preferred compute partner and grants it an equity stake, positioning the chipmaker at the center of the AI infrastructure boom. Under the agreement, Nvidia will build 10 gigawatts of next-generation AI data centers to power OpenAI's ChatGPT platform, with the first gigawatt expected by late 2026.

The partnership comes as OpenAI's user base surpasses 700 million weekly active users, creating unprecedented demand for AI computing power. Analysts estimate the deal could generate $500 billion in revenue for Nvidia. Data center spending is projected to grow from $600 billion today to $3-4 trillion by 2030, reflecting the massive scale of AI infrastructure buildout.

Nvidia's strategic position strengthens further through concurrent partnerships with Intel and CoreWeave. The company's forward P/E ratio now stands at 39.67, down from 59.68, suggesting room for growth despite recent stock gains. This collaboration marks a significant step in the AI hardware arms race, with Nvidia emerging as the clear infrastructure leader.