Nvidia Corp. (NASDAQ:NVDA) and OpenAI on Monday announced a new deal to deploy at least 10 gigawatts of Nvidia-powered systems to support OpenAI's next-generation AI infrastructure.
- NVDA stock climbed on the news. See the chart here.
Nvidia has pledged to invest up to $100 billion in the AI infrastructure rollout, with the first phase expected to launch in the second half of 2026.
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OpenAI CEO Sam Altman said the infrastructure buildout is critical to meeting the AI company's future goals.
"There are three things that OpenAI has to do well: we have to do great AI research, we have to make these products people want to use, and we have to figure out how to do this unprecedented infrastructure challenge," Altman told CNBC.
"You should expect a lot from us in the coming months," he added.
Nvidia CEO Jensen Huang elaborated on just how large the deal is by explaining that 10 gigawatts of infrastructure is equivalent to between 4 million and 5 million GPUs—the same amount Nvidia expects to ship in 2025 and about double its output from last year.
"This is a giant project," Huang said. He also told CNBC that the newly announced deal is "additive" to all other projects and deals, including the Stargate project and previous commitments with OpenAI.
Hargreaves Lansdown analyst Matt Britzman weighed in.
“For Nvidia, the prize is huge — every gigawatt of AI data centre capacity is worth about $50 billion in revenue, meaning this project could be worth as much as $500 billion," Britzman said, per Reuters.
NVDA Price Action: Nvidia stock climbed to nearly 52-week highs after the announcement and ended Monday's session up 3.93% at $183.61, according to Benzinga Pro.
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