Nvidia $100B OpenAI Deal, Cohere $7B Valuation

The artificial intelligence landscape is seeing massive investment and strategic partnerships, highlighted by Nvidia's significant deal with OpenAI. Nvidia is investing up to $100 billion to deploy at least 10 gigawatts of AI systems, starting in the second half of 2026, utilizing its new Vera Rubin platform. This partnership secures OpenAI's hardware needs through 2028 and provides Nvidia with a substantial long-term customer, potentially generating hundreds of billions in revenue. This move diversifies OpenAI's infrastructure beyond Microsoft and positions Nvidia as a key investor in a major AI developer. Meanwhile, other AI and quantum computing firms are also experiencing growth; SoundHound AI's stock jumped following a deal to implement its AI voice ordering system across Red Lobster locations, and Rigetti Computing and D-Wave Quantum saw their stocks hit new highs amid broader optimism in AI and quantum sectors. OpenAI has also opened its first Stargate data center in Abilene, Texas, using infrastructure from Oracle and Nvidia. However, questions are emerging about the sustainability of AI valuations, with the S&P 500 pulling back from record highs as investors re-evaluate the AI trade. Microsoft's introduction of a self-cooling chip also adds to the evolving hardware market. In the enterprise AI space, Synthesized raised $20 million for AI software testing, Cohere secured $100 million to reach a $7 billion valuation for its security-first enterprise AI, and Distyl AI raised $175 million to help large companies become AI-native.

Key Takeaways

• Nvidia and OpenAI have agreed to a partnership where Nvidia will invest up to $100 billion to deploy at least 10 gigawatts of AI systems, with deliveries starting in the second half of 2026.
• This deal secures OpenAI's hardware needs for its next-generation AI models through 2028 and is projected to generate substantial long-term revenue for Nvidia.
• OpenAI has opened its first Stargate data center in Abilene, Texas, utilizing infrastructure from Oracle and Nvidia.
• SoundHound AI's stock rose significantly after announcing a partnership with Red Lobster to deploy its AI voice ordering system across all locations.
• Rigetti Computing and D-Wave Quantum stocks reached new highs, reflecting investor confidence in the booming AI and quantum computing sectors.
• Investors are beginning to re-evaluate AI trade valuations, leading to a pullback in some tech stocks, including Nvidia and Oracle, following the Nvidia-OpenAI deal structure.
• Microsoft is developing its own self-cooling chip, contributing to the evolving AI hardware market.
• Synthesized, an AI startup for software testing, raised $20 million in Series A funding.
• AI firm Cohere achieved a $7 billion valuation after raising $100 million for its security-first enterprise AI technology.
• Distyl AI secured $175 million to assist Fortune 500 companies in becoming AI-native enterprises.

Nvidia and OpenAI strike $100 billion AI deal

Nvidia and OpenAI have agreed to a major partnership where Nvidia will invest up to $100 billion to deploy at least 10 gigawatts of AI systems. Deliveries of these systems, including the new Vera Rubin platform, will begin in the second half of 2026. This deal allows OpenAI to secure hardware for its next-generation AI models while Nvidia gains a significant long-term customer. Bank of America analysts estimate this partnership could generate $300 billion to $500 billion in revenue for Nvidia over time. The agreement involves Nvidia acquiring non-voting equity in OpenAI, with OpenAI using the funds to purchase Nvidia's chips and systems.

Nvidia and OpenAI partner for $100 billion AI infrastructure

Nvidia and OpenAI have formed a significant alliance to build AI infrastructure, involving over 10 gigawatts of compute capacity. Nvidia plans to invest up to $100 billion, starting with an initial $10 billion commitment, to finance hardware deployment. The partnership will utilize Nvidia's new Vera Rubin platform and NVL144 systems, designed for advanced AI models. This collaboration diversifies OpenAI's infrastructure sources beyond Microsoft and aims to scale AI innovation globally. The deal also positions Nvidia as a strategic investor in a key customer, aligning its product roadmap with real-world AI deployments.

Nvidia's $100B OpenAI deal secures AI hardware needs

Nvidia and OpenAI have signed a letter of intent for over 10 gigawatts of AI infrastructure, with Nvidia investing up to $100 billion. This partnership secures OpenAI's training needs through 2028 while their custom chips are developed. The deal complements the $500 billion Stargate project, providing clear demand for Nvidia's growth. Nvidia will invest as capacity comes online, similar to Microsoft's funding approach with OpenAI. This move tightens competition, as rivals like AMD face a higher bar for similar wins, and hyperscalers like Alphabet, Amazon, and Microsoft will continue investing in their own silicon.

SoundHound AI stock jumps on Red Lobster deal

SoundHound AI's stock surged over 5% on September 23, 2025, following the announcement of a partnership with Red Lobster. This deal will implement SoundHound's AI voice ordering system across all Red Lobster locations. The company reported record revenue of $42.7 million in Q2 2025 and raised its full-year sales outlook. SoundHound also recently acquired Interactions Corp. for $60 million to expand its AI agent business. Despite strong growth, the company remains unprofitable, and analysts are divided on its future outlook due to its high valuation.

SoundHound AI stock rises on Red Lobster partnership

SoundHound AI's shares increased by 7.6% after announcing a partnership with Red Lobster to deploy an AI-powered phone ordering agent. This system will handle multiple calls, take orders, and answer customer questions, integrating directly with Red Lobster's point-of-sale system. The deal is seen as a significant step for SoundHound, highlighting demand in the restaurant industry. The company also recently agreed to acquire Interactions Corporation and benefited from positive sentiment around Nvidia's partnership with OpenAI. SoundHound AI reported a 217% year-over-year revenue increase in its second quarter.

Rigetti Computing stock hits new high on AI and quantum boom

Rigetti Computing's stock reached a new all-time high on Tuesday, September 23, 2025, driven by investor interest in artificial intelligence and quantum computing. The surge was partly influenced by Nvidia's expansion in AI and reports of the U.S. government updating its quantum computing strategy to enhance cybersecurity. Rigetti Computing's stock closed up 10.89 percent at $31.46 after hitting an intra-day record of $32.40. This rise reflects broader market optimism in companies positioned to benefit from advancements in AI and quantum technology.

D-Wave Quantum stock hits new high on AI and quantum boom

D-Wave Quantum's shares rallied to a new 52-week high on Tuesday, September 23, 2025, as investors showed confidence in the booming artificial intelligence and quantum computing sectors. The stock reached a high of $27.99 before closing up 7.21 percent at $27.52. This increase was fueled by optimism surrounding Nvidia's AI expansion and news that the U.S. government is updating its quantum computing strategy to improve cybersecurity. D-Wave Quantum saw gains alongside other quantum computing companies like Rigetti Computing and IonQ Inc.

OpenAI data center opens amid AI trade scrutiny

OpenAI has opened its first Stargate data center in Abilene, Texas, featuring infrastructure from Oracle and Nvidia. This launch occurred as investors began questioning the sustainability of AI firm valuations, leading to a pullback in U.S. tech stocks. Concerns include the significant energy required for these data centers and the structure of Nvidia's $100 billion investment in OpenAI, which involves OpenAI buying Nvidia chips. Micron reported a 46% year-on-year sales jump, indicating continued demand for AI hardware, but Federal Reserve Chair Jerome Powell noted that equity prices appear highly valued.

Investors rethink AI trade as S&P 500 pulls back

The S&P 500 pulled back from record highs on Tuesday, September 23, 2025, as investors re-evaluated the artificial intelligence trade. Nvidia and Oracle saw declines following Nvidia's $100 billion investment in OpenAI, which funds Nvidia-centric data centers. Questions arose about potential overcapacity and the circular nature of the deal. Microsoft's announcement of a self-cooling chip also impacted power-management stocks. Despite some large-cap tech stocks falling, the broader market showed mixed performance, with nearly as many stocks advancing as declining.

Nvidia and OpenAI's $100B deal creates 'too big to fail' AI era

Nvidia's $100 billion investment in OpenAI marks a new, complex phase for the AI industry, creating an era where companies are 'too big to fail.' The deal involves Nvidia providing cash for OpenAI to build data centers, with OpenAI then purchasing Nvidia's chips. While OpenAI has never turned a profit and faces significant cash burn, this partnership aims to secure demand for Nvidia's hardware. Analysts note the circular nature of such deals, where capital is recycled within the industry, raising questions about genuine market demand versus internal financing.

Synthesized raises $20 million for AI software testing

Synthesized, a startup using AI to automate software testing, has raised $20 million in Series A funding led by Redalpine. The company aims to address the growing need for quality assurance in the age of 'vibe coding' and AI coding assistants. Synthesized's platform identifies potential application failures at the data and environment levels, a critical task as spending on automated software evaluation tools is projected to reach $10.6 billion by 2033. The funding will support Synthesized's expansion in North America and Europe and help double its team size.

AI firm Cohere valued at $7 billion after $100 million funding

Artificial intelligence startup Cohere has reached a $7 billion valuation after raising $100 million in new funding. The company plans to use this capital to accelerate the development and adoption of its security-first enterprise AI technology. Cohere focuses on providing secure and sovereign AI solutions, training models with internal company data and often running workloads on-premises. This funding round follows a previous $168 million round at a $6.8 billion valuation and includes investments from existing backers like Salesforce Ventures and new investors such as the BDC.

Distyl AI secures $175 million for AI-native enterprise transformation

Distyl AI has raised $175 million to help Fortune 500 companies become 'AI-native enterprises.' The company provides a proprietary AI agent to help businesses use AI for immediate results and re-architect their operations for the AI era. Distyl focuses on enabling 'AI-native orchestration' across business silos, delivering outcomes within three months. The company works with sectors like healthcare, telecommunications, and financial services. Vinod Khosla of Khosla Ventures noted that Distyl is collaborating with global companies to build AI-native enterprises and leapfrog legacy infrastructure.

Sources

• Bank of America Nvidia-OpenAI call puts half trillion on the table
• NVIDIA and OpenAI Forge $100B Alliance to Power the Next AI Revolution
• Nvidia's $100B OpenAI Pact Buys Time in the Custom Chip Race
• SoundHound AI Stock Skyrockets on Red Lobster Deal – Is SOUN the Next Big AI Winner or Overhyped?
• Why SoundHound AI (SOUN) Stock Is Trading Up Today
• Rigetti Computing (RGTI) Soars to Fresh High on AI, Quantum Computing Boom
• D-Wave Quantum (QBTS) Hits New 52-Week High on AI, Quantum Computing Boom
• CNBC Daily Open: Raining on OpenAI's parade
• Santoli's Tuesday market wrap-up: S&P 500 pulls back from record highs as investors rethink the AI trade
• Welcome to the much bigger, more incestuous era of ‘too big to fail’
• Synthesized, the company bringing automated QA to a 'vibe code' world, gets $20 million Series A
• AI Firm Cohere Valued at $7 Billion After Raising $100 Million
• Distyl Raises $175 Million to Help Fortune 500 Firms Become ‘AI-Native Enterprises’