Nvidia is making a substantial investment of up to $100 billion to support OpenAI in building large-scale AI data centers, aiming to deploy at least 10 gigawatts of computing power by the second half of 2026. This collaboration significantly bolsters OpenAI's capacity to train and operate advanced AI models like ChatGPT, while solidifying Nvidia's leading role in AI hardware. The news has positively impacted Nvidia's stock and contributed to broader market gains, including a new record high for the S&P 500. Meanwhile, IREN is doubling its AI GPU capacity to 23,000 units through a $674 million investment in NVIDIA B300s, B200s, and AMD MI350Xs, raising its AI Cloud revenue target to over $500 million by Q1 2026. In the broader AI market, OpenAI leads with a $324 billion valuation, followed by Anthropic. Microsoft is recognized as a top AI stock pick due to its Azure platform and OpenAI partnership, integrating AI across its product suite. ASML, a key supplier of EUV lithography machines essential for AI chip production, is poised to become Europe's first $1 trillion company. Alibaba's Cloud Intelligence division shows strong growth with triple-digit gains in AI products, though investor sentiment is tempered by regulatory scrutiny and a significant settlement. While CFRA maintains a 'Buy' rating on Nvidia, they note limited immediate upside, suggesting other AI stocks might offer greater potential.
Key Takeaways
- Nvidia plans to invest up to $100 billion to help OpenAI build AI data centers, aiming for at least 10 gigawatts of computing power by the second half of 2026.
- This partnership between Nvidia and OpenAI is expected to advance AI development and deployment at a massive scale.
- Nvidia's stock saw a notable increase following the announcement of the OpenAI deal, contributing to market highs.
- IREN is investing $674 million to double its AI GPU fleet to 23,000 units, including NVIDIA B200s/B300s and AMD MI350X.
- IREN has raised its AI Cloud annualized revenue target to over $500 million by Q1 2026.
- OpenAI leads the private AI market with a $324 billion valuation, followed by Anthropic.
- Microsoft is considered a top AI stock pick due to its Azure cloud platform and strategic partnership with OpenAI.
- ASML, a critical supplier of EUV lithography machines for AI chip production, is projected to become Europe's first $1 trillion company.
- Alibaba's Cloud Intelligence division reported strong revenue growth, with AI products showing triple-digit gains, but faces risks from regulatory scrutiny and a settlement.
- CFRA maintains a 'Buy' rating on Nvidia but suggests limited immediate upside, pointing to potential greater upside in other AI stocks.
Nvidia invests $100 billion in OpenAI for AI data centers
Nvidia and OpenAI are forming a major partnership for AI infrastructure. Nvidia plans to invest up to $100 billion to help OpenAI build large AI data centers. These centers will use Nvidia's chip systems to power OpenAI's AI models like ChatGPT. The first phase of this project is expected to launch in the second half of 2026 using Nvidia's new Vera Rubin platform. This collaboration aims to advance AI development and deployment at a massive scale.
Nvidia invests up to $100 billion in OpenAI
Nvidia announced a significant partnership with OpenAI, planning to invest up to $100 billion to build AI data centers. This deal will help OpenAI expand its computing power to train and run advanced AI models. Nvidia's stock saw a notable increase following the announcement. The collaboration is set to deploy at least 10 gigawatts of AI data centers powered by Nvidia's systems, with initial deployment planned for the second half of next year.
Nvidia's OpenAI deal boosts stock and market
Nvidia's stock price surged after announcing a major partnership with OpenAI, which includes a potential $100 billion investment. As part of this agreement, OpenAI plans to build large AI facilities using Nvidia's hardware. This significant deal helped push the S&P 500 to a new record high. The partnership is seen as a key step for OpenAI in advancing its AI development and for Nvidia in solidifying its leading position in AI hardware.
IREN doubles AI GPUs to 23K, shares jump
IREN has significantly expanded its AI cloud capacity by doubling its GPU fleet to 23,000 units. The company invested approximately $674 million in new NVIDIA B300s, B200s, and AMD MI350Xs. This expansion aims to meet the growing global demand for AI computing power. IREN also raised its AI Cloud annualized run-rate revenue target to over $500 million by Q1 2026. The company's shares rose 11% in pre-market trading following the announcement.
IREN invests $674M in AI, boosting GPU capacity
IREN has made a substantial $674 million investment to double its AI cloud capacity, acquiring 12,400 new GPUs including NVIDIA B200s and B300s, and AMD MI350X units. This brings their total AI cloud fleet to 23,000 GPUs. The company has also increased its AI Cloud annual revenue target to over $500 million by early 2026. This strategic move diversifies IREN's business beyond cryptocurrency mining and capitalizes on the high demand for AI computing resources.
Top AI Stocks on Wall Street
The private market for AI companies is booming, with valuations soaring. OpenAI leads with a $324 billion valuation, followed by Anthropic and xAI. These companies are experiencing rapid growth, with some raising billions without going public. The article highlights 10 AI stocks to watch on Wall Street, including Accenture and CrowdStrike, based on hedge fund interest and market analysis. Despite concerns about a potential bubble, many investors remain bullish on AI's long-term prospects.
Microsoft: A top AI stock pick
Microsoft is highlighted as a leading AI stock due to its strategic investments and strong market position. The company's Azure cloud platform is crucial for AI applications, and its partnership with OpenAI provides a significant advantage. Microsoft is integrating advanced AI models across its products, from Bing to Office. With its established track record and broad reach, Microsoft is well-positioned to benefit from the ongoing AI revolution.
ASML: Europe's potential $1 trillion AI company
ASML, a Dutch company listed on both Euronext Amsterdam and Nasdaq, is predicted to become Europe's first $1 trillion company. ASML holds a monopoly on Extreme Ultraviolet (EUV) lithography machines, essential for producing high-powered AI chips. Major chipmakers like TSMC, Samsung, and Intel rely on ASML's technology. With a current market cap of approximately €291 billion, ASML is Europe's largest company and is expected to see strong growth driven by the increasing demand for AI semiconductors.
AI predicts Ravens vs. Lions player props
An AI system developed by SportsLine's Data Science team is providing predictions for the Monday Night Football game between the Baltimore Ravens and Detroit Lions. The AI analyzes NFL player prop odds to offer insights and picks for various markets. For this game, the AI suggests Lamar Jackson will go under 231.5 passing yards. The system also identifies additional high-rated picks for other players, including Mark Andrews.
Alibaba's Cloud and AI growth face settlement overhang
Alibaba's Cloud Intelligence division reported strong 26% revenue growth, with AI products showing triple-digit gains for the seventh consecutive quarter. This growth has fueled an 87% stock rally over the past year. However, investor confidence is impacted by regulatory scrutiny and a $433.5 million settlement related to Ant Group's IPO disclosures. While the company's cloud and AI segments are performing well, the legal settlement and ongoing oversight present risks.
CFRA rates Nvidia Buy but sees limited upside
CFRA has maintained a 'Buy' rating on NVIDIA (NVDA) but cautioned that the stock's upside potential is currently limited. The firm cited improving U.S./China trade negotiations as a factor for potential future growth. Wall Street analysts generally hold a consensus 'Buy' rating for Nvidia, with an average price target suggesting a potential upside. However, the article also suggests that other AI stocks might offer greater upside potential with less risk.
Nvidia backs OpenAI with $100 billion AI chip investment
Nvidia is significantly deepening its partnership with OpenAI through a potential $100 billion investment focused on AI infrastructure. This deal aims to provide at least 10 gigawatts of computing power for OpenAI's data centers, utilizing Nvidia's advanced GPUs. The partnership strengthens Nvidia's position in the AI hardware market and offers OpenAI enhanced control over its infrastructure for faster innovation. This collaboration highlights the critical role of hardware partnerships in the rapidly expanding AI landscape.
Sources
- Nvidia is investing up to $100 billion in OpenAI as part of an AI data center deal
- Nvidia Says It's Investing Up to $100B in ChatGPT Maker OpenAI
- Nvidia stock is up big on the company's OpenAI partnership — and it's pulling the whole market higher
- IREN Doubles AI Cloud Fleet to 23K GPUs, Shares Jump 11% in Pre-Market Trading
- IREN stock soars 11% after massive $674M AI investment
- 10 Must-Watch AI Stocks on Wall Street
- What Is 1 of the Best Artificial Intelligence (AI) Stocks to Buy Now?
- Prediction: this Nasdaq-listed AI stock will one day be Europe’s first $1trn company
- Monday Night Football player props, betting lines: AI predictions, Ravens vs. Lions picks, prop bets, SGPs
- $BABA: AI & Cloud Drive 26% Growth — Yet $433.5M Settlement Overhang Remains
- CFRA Reiterates Buy on NVIDIA (NVDA) but Warns of Limited Upside
- Nvidia Backs OpenAI With A $100 Billion Bet On AI Chips
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