Nvidia plans to invest $100 billion into OpenAI, leading to increased spending on Nvidia computer chips. This deal could potentially boost Nvidia’s market cap to $10 trillion if AI spending continues to grow. OpenAI, with over 700 million weekly active users, is rapidly expanding its ChatGPT systems with Nvidia’s help. The partnership will result in building 10 gigawatts or more of AI data centers.

Nvidia, the largest GPU supplier for AI data centers, will invest $100 billion in OpenAI, who will then use the funds to build data centers with Nvidia chips. This investment could represent a 20% increase in the total data center footprint in the U.S. The AI data center boom has already made Nvidia the world’s largest company by market cap.

The partnership with OpenAI could significantly increase Nvidia’s revenue over the next decade. While the $100 billion investment may not impact Nvidia’s top line immediately, it could add tens of billions to its annual revenue by 2030. Nvidia’s investment in OpenAI could also yield lucrative returns if OpenAI becomes a trillion-dollar business.

OpenAI’s deal with Nvidia could lead to more spending on Nvidia computer chips, potentially pushing the company’s revenue to over $300 billion annually. If Nvidia can maintain a net income margin of 53%, it could reach a market cap of $10 trillion by 2030. The deal with OpenAI has the potential to drive Nvidia’s growth in the AI sector.

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