Nvidia Is Partnering Up With OpenAI. Should You Buy, Sell, or Hold NVDA Stock Here?

Nvidia (NVDA) announced a massive $100 billion investment commitment in OpenAI on Monday, sending shares up nearly 4% and adding $170 billion to its market capitalization. The landmark partnership involves deploying 10 gigawatts of Nvidia systems for OpenAI's next-generation AI infrastructure, equivalent to 4-5 million GPUs, according to CEO Jensen Huang.

This deal represents a virtuous cycle for Nvidia. OpenAI receives the investment capital and then spends it on Nvidia's chips and systems. With each gigawatt of data center capacity costing $50-60 billion, and $35 billion of that going directly to Nvidia hardware, this partnership essentially guarantees massive future revenue streams. The first phase is scheduled to launch in late 2026, utilizing Nvidia's next-generation Vera Rubin platform.