How Nvidia’s $100B Deal with OpenAI Is Powering the AI Revolution

Published: Tuesday, September 23, 2025 · 10:50 AM | Updated: Tuesday, September 23, 2025 · 10:50 AM

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Introduction

Nvidia has once again captured Wall Street’s attention with its bold move to invest up to $100 billion in OpenAI. This massive partnership not only pushed Nvidia’s stock back to a 52-week high but also signaled a new era in artificial intelligence development. By combining Nvidia’s cutting-edge chips with OpenAI’s rapidly advancing language models, the two companies are setting the stage for what many are calling the “AI Industrial Revolution.” Investors are closely watching this collaboration, as it could reshape the future of technology and even lead to the first trillion-dollar IPO.forces them to rethink long-term workforce strategies. In this article, we’ll break down what the new fee means for businesses — and why offshore outsourcing remains a safe, cost-effective way to access the talent they need.

Summary

Nvidia’s $100 Billion Bet on OpenAI
Sparking the AI Industrial Revolution
Could OpenAI Go Public?
Nvidia’s Other AI Partners

1. Nvidia’s $100 Billion Bet on OpenAI

Nvidia (NVDA Quick QuoteNVDA – Research Report) stock fell about 4% in recent weeks but quickly bounced back. On Monday, it hit a 52-week high of $184 a share after the company announced plans to invest up to $100 billion in OpenAI.

This move surprised analysts. Many had viewed Nvidia and OpenAI as possible rivals in building the infrastructure for artificial intelligence (AI).

OpenAI’s latest large language models (LLMs) were trained on Nvidia’s H100 GPUs and optimized with its CUDA (Compute Unified Device Architecture) platform. Yet OpenAI also partnered with Broadcom (AVGO Quick QuoteAVGO – Research Report) to design custom AI chips, raising concerns about Nvidia’s role.

Nvidia CEO Jensen Huang responded by calling the OpenAI deal a major step forward. The partnership shows Nvidia wants its chips and systems to remain central to the most advanced AI projects.

After the news, shares of several Nvidia partners also rose. CoreWeave (CRWV Quick QuoteCRWV – Research Report), Dell Technologies (DELL Quick QuoteDELL – Research Report), and Oracle (ORCL Quick QuoteORCL – Research Report) all gained in Monday trading.

2. Sparking the AI Industrial Revolution

Nvidia’s investment is one of the largest technology deals ever. It will help OpenAI speed up development of its next-generation models and move closer to artificial general intelligence (AGI).

According to Huang, global demand for computing power has surged. ChatGPT, he said, is the most revolutionary AI project so far, used across industries and countries. The goal of the partnership is to build infrastructure that takes AI into everyday business and consumer use.

The deal will allow OpenAI to build at least 10 gigawatts (GW) of AI data centers using Nvidia’s systems. That equals millions of GPUs at work. To compare, New York City’s peak electricity demand is about 10–11 GW.

The first gigawatt is expected to be ready in late 2026. It will use Nvidia’s upcoming Vera Rubin platform, a system built to power large-scale AI applications.

3. Could OpenAI Go Public?

OpenAI CEO Sam Altman said Nvidia’s investment is vital for building better AI models and reducing the current shortage of computing power. This will also help the company meet growing demand and generate more revenue.

Right now, OpenAI is valued at about $500 billion, making it the most valuable private company. For reference, the average S&P 500 company is valued at around $775 billion. Nvidia itself is worth more than $4.2 trillion, the highest valuation among public companies worldwide.

With added capacity, many analysts believe OpenAI could launch the first trillion-dollar IPO. ChatGPT already has 700–800 million weekly active users, which adds weight to that idea. While OpenAI is exploring the IPO path, it has not set a clear timeline.

Investors are also watching CoreWeave. The AI cloud company went public in March and its stock has already jumped more than +200%. At the end of Q2, Nvidia’s $3 billion stake in CoreWeave grew in value. Nvidia also signed a $6.3 billion deal to buy CoreWeave’s remaining cloud capacity through 2032.

4. Nvidia’s Other AI Partners

Beyond its well-known partners, Nvidia also works closely with Hewlett Packard (HPE Quick QuoteHPE – Research Report). Together, they built the HPE Private Cloud AI, a full-stack infrastructure platform designed for businesses and industries.

Hewlett Packard stock looks affordable compared to peers. It trades under $30 a share with a forward earnings multiple of 13X. By contrast, CoreWeave, Dell, and Oracle all trade above $100. Dell also trades at 13X, while Oracle trades at 45X.

Applied Digital (APLD Quick QuoteAPLD – Research Report) is another important partner. Though not yet profitable, it has shown rapid revenue growth. The company operates advanced data centers that power blockchain and high-performance computing.

Applied Digital also signed a $7 billion, 15-year lease with CoreWeave for two massive data centers in North Dakota, with capacities of 100 MW and 150 MW. On Monday, its stock rose nearly +20% to a 52-week high of $24. Over the past decade, Applied Digital shares have surged more than 23,800%, one of the few gains close to Nvidia’s 31,000% return.

Conclusion

Nvidia’s investment in OpenAI highlights the growing demand for powerful AI infrastructure and the race to dominate the next generation of technology. With billions committed, global data centers planned, and strong partnerships across the AI ecosystem, Nvidia is not only securing its role as the leader in AI but also opening the door for OpenAI’s potential historic IPO. As this alliance unfolds, both companies are positioned to drive innovation, fuel market growth, and set new milestones in the journey toward artificial general intelligence.