Headlines
Analysts react to Nvidia's $100 billion investment in OpenAI
Published by Global Banking and Finance Review
Posted on September 22, 2025
3 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 22, 2025
3 min readLast updated: January 21, 2026
Nvidia's $100 billion investment in OpenAI aims to strengthen AI infrastructure, with analysts highlighting its strategic importance for both companies.
(Reuters) -Chipmaker Nvidia is set to invest up to $100 billion in ChatGPT-parent OpenAI, signing a letter of intent for a strategic partnership to deploy at least 10 gigawatts of compute, the companies said on Monday.
Nvidia has used its financial clout to keep its hardware central to the buildout of artificial intelligence systems. Keeping OpenAI, which is also exploring its own chip designs, as a key customer could help the company reinforce its dominance as the industry considers rival suppliers.
Here are some analyst reactions to the partnership:
MATT BRITZMAN, SENIOR EQUITY ANALYST, HARGREAVES LANSDOWN
"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.
"By locking in OpenAI as a strategic partner and co-optimizing hardware and software roadmaps, Nvidia is ensuring its GPUs remain the backbone of next-gen AI infrastructure.
"The market is clearly big enough for multiple players, but this deal underscores that, when it comes to scale and ecosystem depth, Nvidia is still setting the pace — and raising the stakes for everyone else."
JACOB BOURNE, TECHNOLOGY ANALYST, EMARKETER
"Demand for Nvidia GPUs is effectively baked into the development of frontier AI models, and deals like this should also ease concerns about lost sales in China.
"It also throws cold water on the idea that rival chipmakers or in-house silicon from the Big Tech platforms are anywhere close to disrupting Nvidia's lead.
"For OpenAI, it signals greater independence as it continues diversifying away from its Microsoft partnership and races to develop its next-generation models."
ANSHEL SAG, PRINCIPAL ANALYST, MOOR INSIGHTS & STRATEGY
"I think this strengthens the partnership between the two companies that has existed since the beginning of OpenAI's existence. This also validates Nvidia's long-term growth numbers with so much volume and compute capacity, also enabling OpenAI to scale to even bigger customers."
BEN BAJARIN, CEO OF TECHNOLOGY CONSULTING FIRM CREATIVE STRATEGIES
"Really the point Nvidia was making was that it's just enabling OpenAI to meet surging demand and, at this point, we know there's surging demand for Nvidia GPUs, because that's primarily what OpenAI runs on."
(Reporting by Juby Babu in Mexico City, Kritika Lamba and Arsheeya Bajwa in Bengaluru; Editing by Alan Barona)
Nvidia's investment is significant as it could potentially generate up to $500 billion in revenue by locking in OpenAI as a strategic partner and optimizing hardware and software roadmaps.
This investment reinforces Nvidia's position as a leader in AI infrastructure, ensuring that its GPUs remain central to the development of next-gen AI models.
Analysts indicate that the demand for Nvidia GPUs is integral to the development of frontier AI models, and partnerships like this will alleviate concerns about potential sales losses in markets like China.
For OpenAI, this partnership signifies greater independence as it diversifies away from its Microsoft partnership and accelerates the development of its next-generation AI models.
Each gigawatt of AI data center capacity is estimated to be worth about $50 billion in revenue, highlighting the financial potential of Nvidia's investment.
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