Nvidia’s $100B Bet On OpenAI Sparks Market Rally And Eases Concerns Over Startup’s Shaky Finances

Benzinga

Nvidia surged after announcing a $100 billion investment into OpenAI to back a historic data center build-out, according to The Wall Street Journal. The move reflects Nvidia’s broader strategy of leveraging its market strength to bolster demand for its chips through strategic investments in partners such as CoreWeave, Intel, and xAI. Analysts note the arrangement effectively offers OpenAI discounted access to GPUs, with NewStreet Research estimating that every $10 billion invested translates to $35 billion in Nvidia chip purchases. The deal boosted Nvidia’s market value by nearly $160 billion and eased doubts about OpenAI’s ability to fund its multibillion-dollar commitments. The deal also lowers OpenAI’s borrowing costs by reducing credit risk, a stark contrast to previous high-interest financing faced by AI startups.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:03NVIDIA surged after announcing a $100 billion investment into OpenAI to back a historic

00:08data center build-out, according to the Wall Street Journal. The move reflects NVIDIA's

00:13broader strategy of leveraging its market strength to bolster demand for its chips

00:18through strategic investments in partners such as CoreWeave, Intel, and XAI. Analysts note the

00:23arrangement effectively offers OpenAI discounted access to GPUs, with New Street research estimating

00:29that every $10 billion invested translates to $35 billion in NVIDIA chip purchases.

00:35The deal boosted NVIDIA's market value by nearly $160 billion and eased doubts about OpenAI's

00:41ability to fund its multi-billion dollar commitments. The deal also lowers OpenAI's borrowing costs by

00:47reducing credit risk, a stark contrast to previous high-interest financing faced by AI startups.

00:52For all things money, visit Benzinga.com.

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