Nvidia Plans $30 Billion Investment in OpenAI Amid Funding Round
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 9 hours ago
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Should l Buy NVDA?
Source: CNBC
- Massive Investment: Nvidia is in discussions to invest up to $30 billion in OpenAI, potentially valuing the AI startup at $730 billion, reflecting strong market confidence in AI technologies.
- Complex Investment Background: This investment is separate from the $100 billion infrastructure agreement announced in September, which involves Nvidia gradually investing in OpenAI to support the rollout of its supercomputing facilities over the coming years.
- Investment Uncertainty: Although Nvidia's $30 billion investment is not finalized and details are still subject to change, company executives have indicated a commitment to participate in OpenAI's next funding round, highlighting ongoing interest in the AI sector.
- Accelerated Fundraising Discussions: OpenAI is also engaging with other investors for fundraising discussions, with total funding potentially reaching $100 billion, indicating strong market interest and confidence in its future development.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 187.980
Low
200.00
Averages
264.97
High
352.00
Current: 187.980
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Earnings Potential Analysis: Oppenheimer anticipates Nvidia's Q4 sales could see a typical upside of $2B to $3B, primarily driven by the GB300 Ultra, indicating strong performance in the AI sector.
- Growing Market Demand: Expected capital expenditures from cloud service providers are projected to reach $650B in 2026, up from over $400B in 2025, reflecting sustained demand for Nvidia's products.
- New Product Outlook: The average selling price for Vera Rubin is expected to be 40% to 50% higher than that of GB300, potentially adding around $8B in revenue for Nvidia, further solidifying its market leadership.
- Market Size Expansion: With China now included, Nvidia's total addressable market is estimated to be around $4T, showcasing its dominant position in the global AI platform and future growth potential.
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- Weak Market Performance: Since August 2025, Nvidia's stock has only risen by 5%, significantly lagging behind the S&P 500's 10% gain, indicating market caution regarding its future growth despite optimistic prospects in the AI sector.
- Surge in Capital Expenditures: Amazon, Alphabet, and Meta expect to spend at least $500 billion in capital expenditures in 2026, positioning Nvidia as a primary beneficiary; if it maintains its market share, it could see substantial revenue growth, with global data center capital expenditures projected to reach $3 trillion to $4 trillion by 2030.
- China Market Resumption: Nvidia has regained the ability to export GPUs to China, re-entering the world's second-largest AI market; although the stock has not significantly reacted to this positive development, it provides new momentum for future growth.
- Attractive Valuation: With a forward P/E ratio of less than 24, Nvidia's stock appears cheap compared to the S&P 500's 21.9, suggesting that investors should consider buying during this pullback, especially with upcoming spending increases on the horizon.
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- Global Tech Landscape Shift: An analyst predicts that in the next five to ten years, most of the world's population could be using a Chinese tech stack, indicating that China's rapid advancements in AI may threaten U.S. market dominance.
- Computational Efficiency Advantage: China's focus on developing compute-efficient models, particularly achieving strong performance at lower costs, positions it favorably in the AI race, especially given its recent energy supply boom.
- Rise of Open-Source Models: By releasing competitive open-source models, Chinese labs are eroding the commercial moat that U.S. closed-model vendors have relied on, making it more appealing for enterprises to opt for cost-effective Chinese solutions.
- Multipolar AI Ecosystem: As competition shifts from model performance to value realization, the future global AI landscape may become multipolar, with different countries competing across various tech layers, particularly in the Global South where cost considerations dominate technology choices.
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- Loan Guarantee Agreement: AMD has agreed to guarantee a $300 million loan for cloud computing startup Crusoe, which will be backed by Goldman Sachs, allowing Crusoe to secure a loan interest rate of around 6%, significantly lower than market rates.
- Chip Buyback Proposal: AMD proposed to buy back its chips from Crusoe if the startup fails to attract customers like AI developers, providing financial security for Crusoe while enhancing AMD's competitive edge in the AI infrastructure market.
- Data Center Installation: Crusoe is installing AMD chips in an Ohio data center being built by Canadian developer 5C, which will further bolster AMD's presence in the emerging “neoclouds” market, catering to specialized cloud services for AI companies.
- Market Competition Strategy: AMD has recently expanded its collaboration with Tata Consultancy Services in India to roll out its latest AI data center design, aiming to capture market share in a rapidly growing sector, especially after posting a record $10.3 billion in revenue in Q4, a 34% year-over-year increase.
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- Nvidia's Investment: Nvidia is nearing a deal to invest $30 billion in OpenAI, the company behind ChatGPT.
- Significance of the Deal: This investment highlights Nvidia's commitment to advancing AI technologies and its strategic partnership with OpenAI.
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- Investment Increases: Soros Fund Management raised its Nvidia (NVDA) position by 22% in Q4 to 665K shares worth approximately $124 million, indicating sustained confidence in the chipmaker.
- Holding Changes: Point 72 Asset Management increased its Nvidia holdings by 38% to 9.99 million shares valued at around $1.86 billion, maintaining a significant position in its portfolio.
- Reduction Trends: While Goldman Sachs (GS) still holds $31 billion in Nvidia shares, it reduced its stake by 1%, and JP Morgan (JPM) cut its holdings by 7% in Q4 to 456 million shares worth about $85 billion, reflecting market divergence on the stock.
- Major Liquidation: SoftBank (SFTBY) completely liquidated its over 19.22 million shares of Nvidia to finance further investments in AI, indicating a strategic shift in investment focus.
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