Nvidia (NASDAQ:NVDA) stock gained on Monday after it announced that it has moved to expand its decade-long collaboration with OpenAI by signing a letter of intent for a strategic partnership. The companies plan to deploy at least 10 gigawatts of Nvidia systems to build OpenAI’s next-generation AI infrastructure, a leap toward training and running models on the path to superintelligence. NVIDIA is committed to investing up to $100 billion in OpenAI as these systems roll out, with the first phase likely to go live in the second half of 2026 using the new Nvidia Vera Rubin platform.
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Nvidia traded close to its 52-week high of $184.48.
Under the agreement, OpenAI named Nvidia its preferred strategic compute and networking partner for AI factory growth. Both companies will co-optimize their roadmaps, aligning OpenAI’s model and infrastructure software with Nvidia’s hardware and software. This deal complements Nvidia and OpenAI’s existing collaborations with Microsoft (NASDAQ:MSFT), Oracle (NYSE:ORCL), SoftBank (OTC:SFTBY), and Stargate partners to build the world’s most advanced AI infrastructure.
Nvidia’s equity investment in OpenAI does not confer control rights. OpenAI’s non-profit parent retains majority governance control.
The timing highlights OpenAI’s rapid growth, with more than 700 million weekly active users and widespread adoption by enterprises and developers.
Nvidia and OpenAI expect to finalize partnership details in the coming weeks.
OpenAI chief Sam Altman told CNBC Live that building this infrastructure is critical to everything it wants to do. Nvidia CEO Jensen Huang told CNBC that this project is additive to everything announced and contracted.
Nvidia’s stock has gained over 36% year-to-date, topping the Nasdaq 100 index’s 18% returns, as Big Tech giants keep splurging on their AI ambitions, bearing testimony to the continued AI frenzy.
Earlier in September, OpenAI shared plans to begin mass production of its first proprietary AI chip next year by partnering with Nvidia rival Broadcom (NASDAQ:AVGO). Broadcom CEO Hock Tan confirmed the deal on its earnings call, disclosing that it secured $10 billion in orders from OpenAI, its fourth major customer win.
The partnership, which started in 2024, will allow OpenAI to use the chips internally to support ChatGPT’s 700 million weekly users and upcoming models like GPT-5.
The move mirrors strategies by Alphabet (NASDAQ:GOOGL), Amazon.com (NASDAQ:AMZN), and Meta Platforms (NASDAQ:META), which have all developed custom processors to optimize AI workloads.
Price Action: At last check on Monday, NVDA stock was trading higher by 3.65% to $183.11.
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