- Nvidia announced a new partnership with OpenAI on Monday, and the chipmaker’s stock is jumping.
- As part of the agreement, OpenAI could deploy at least 10 gigawatts of Nvidia systems.
- The jump in Nvidia stock helped push the S&P 500 to a fresh record high in the session.
The move: Nvidia stock jumped as much as 5% on Monday. The move adds to the gains for the AI stalwart in 2025, with the stock up 36% year-to-date.
The jump on Monday helped spark a broader rise in major indexes. After starting the session in the red, the tech-heavy Nasdaq Composite was up almost 1% after news of the deal, while the S&P 500 jumped 0.5% to hit a fresh record high.
The chart:
Why: Nvidia announced a new partnership with OpenAI, which will build new gigascale AI facilities using the chip maker’s hardware. As part of the deal, Nvidia will invest $100 billion in the ChatGPT maker
OpenAI plans to construct at least 10 gigawatts of AI data centers running Nvidia systems. The first gigawatt is expected to be deployed on Nvidia’s Vera Rubin platform in the first half of 2026, the chipmaker said in a press release.
Nvidia’s move is sparking momentum for other AI hardware makers.
Advanced Micro Devices, rose 3% while Taiwan Semiconductor Manufacturing jumped 4%.
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What it means: For investors, the partnership is the latest signal that AI momentum isn’t waning despite fears earlier in the year that companies could pull back on investments in the space.
The plan to construct more data centers also represents a major step by OpenAI toward deploying superintelligence, the phase of the AI race on which tech leaders like Sam Altman and Meta CEO Mark Zuckerberg are highly focused.
A year ago, Altman posted on his blog that he felt confident that superintelligence could be achieved. Now, his company has a powerful new partner that can help it reach that goal.
“Compute infrastructure will be the basis for the economy of the future, and we will utilize what we’re building with NVIDIA to both create new AI breakthroughs and empower people and businesses with them at scale,” Altman said in Nvidia’s announcement of the partnership.