Nvidia and OpenAI have partnered to deploy at least 10 gigawatts of Nvidia systems for OpenAI’s AI infrastructure. Nvidia plans to invest up to $100 billion in OpenAI, aligning with the $500 billion Stargate project. The deal ensures Nvidia’s market share in AI. Shares rose 4% on the news, maintaining a $190 fair value estimate for Nvidia. The timing of buildouts is undisclosed, but cautiously optimistic for industry growth. Nvidia may invest more in OpenAI in the future, but risks like supply chain expansion may impact the deal’s pace.

Read more at Morningstar: Firm Shares Big AI Dreams with OpenAI, Announce a Strategic Partnership