Shares of NVIDIA (NASDAQ:NVDA) have been down in the dumps in recent days due to challenges in China and questions regarding what exactly NVIDIA will be allowed to ship to the country, if at all. Today, things are looking up due to an announcement that NVIDIA and OpenAI will collaborate, with NVIDIA investing $100 billion to deploy extensive computing powered by their chips.
According to a company statement, NVIDIA will deploy up to 10 gigawatts of AI data centers over time. The first systems will be deployed in the second half of 2026 using the Vera Rubin platform.
Jensen Huang, founder and CEO of NVIDIA, stated in a release that the partnership marks the “next leap forward” to power the “next era of intelligence.”
Greg Brockman, cofounder and president of OpenAI, said the 10 gigawatts of compute will drive “intelligence and scale the benefits of this technology to everyone.”
OpenAI founder Sam Altman told CNBC that compute constraints have become a significant challenge, and this partnership should help alleviate some of this pain. OpenAI has grown to over 700 million weekly active users and continues to report solid growth with corporate and individual adoption.
Reports have indicated that China is looking to encourage homegrown solutions for AI chips. As the market is large, this has impacted NVIDIA’s share performance. At the same time, NVIDIA recently removed any China revenue from quarterly expectations, but this has failed to quell market concerns as to forward guidance. The news today has helped to reverse recent share declines, pushing NVIDIA toward new 52-week highs. NVIDIA is currently valued at over $4.46 trillion.
