While Others Chase The Bubble, Nvidia Builds The Future
πππOracle $Oracle(ORCL)$
And then came Nvidia $NVIDIA(NVDA)$
With a USD 100 billion commitment to OpenAI. It is one of the most ambitious infrastructure partnerships in tech history and it is not just about chips. It is about building the backbone of superintelligence.
Here is what it entails :
10 Gigawatts of AI infrastructure : Nvidia will deploy at least 10 Gigawatts of systems - enough to power the next generation of OpenAI models. That is the equivalent to 5 Hoover Dams worth of computing power.
Millions of GPUs: These data centers will be packed with Nvidia's most advanced chips including the Rubin platform, optimised for Generative AI.
First Deployment in 2026 : The first Gigawatt goes live in the 2nd half of 2026. Each phase unlocks more of Nvidia's investment, progressively scaling up.
Financial Structure : Dual Commitment
Cash + Equity : OpenAI will pay Nvidia in cash for chips while Nvidia will take a non controlling equity stake in OpenAI - A dual transaction that deepens their alignment.
Co Optimisation : Nvidia and OpenAI will jointly optimise hardware and model roadmaps - meaning that future GPT models will be built with Nvidia's architecture in mind.
Why It Matters
700 million weekly users : OpenAI's scale demands unprecedented computing power. Nvidia is stepping in not just as a supplier but as a strategic enabler.
Superintelligence Ambitions: Sam Altman calls the partnership "the basis for the economy of the future". This partnership is designed to push the frontier of AI itself.
Antitrust Watch: With Microsoft, Oracle and Softbank also involved, regulators are watching closely. But for now the race is on.
Wall Street Analysts are Bullish on Nvidia
The average target price for Nvidia is now USD 208 with bulls like Bank of America and Bernstein going as high as USD 235. Nvidia at USD 200 isn't a question. It is a trajectory and a matter of time before it happens.
This is because Nvidia isn't floating in the AI Bubble. It is anchoring it.
Concluding Thoughts
Nvidia is powering OpenAI. It is co-optimising the future of AI. Nvidia is building the rails, the engines and the fuel of AI. While others sell the story, Nvidia is the story - the quiet architect behind the AI revolution. I am so glad that I am invested in Nvidia.
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