According to the Zhitong Finance APP, on September 22 local time, NVIDIA (NVDA.US) and OpenAI announced a partnership, which includes plans to build a large data center and NVIDIA's investment of up to $100 billion in OpenAI. As a result of this news, NVIDIA's stock rose nearly 4% on Monday.
Under the agreement, OpenAI will use NVIDIA systems to build and deploy at least 10 gigawatts of AI data centers for training and running next-generation models. A source close to OpenAI revealed that the agreement will prompt NVIDIA to begin delivering chips as early as the end of 2026, involving two independent but interconnected transactions. The source stated that OpenAI will purchase chips from NVIDIA in cash, while NVIDIA will acquire a non-controlling stake in OpenAI through its investment. NVIDIA's initial $10 billion investment in OpenAI will commence after the two companies finalize the agreement on OpenAI's procurement of NVIDIA chips.
Regarding this collaboration, Bank of America stated that NVIDIA's $100 billion investment in OpenAI could potentially generate up to $500 billion in revenue in the future. Analysts at Bank of America, led by Vivek Arya, noted, &#34;This collaboration includes a letter of intent, and NVIDIA will participate in at least 10 gigawatts of systems, with the first phase of NVIDIA systems expected to go live in the second half of 2026 through the Vera Rubin platform. We estimate this could potentially bring in about $300 billion to $500 billion in revenue, equivalent to 3 to 5 times the return on investment.&#34; &#34;Secondly, and more importantly, OpenAI will collaborate with NVIDIA as its preferred strategic computing and networking partner. Although the agreement does not specify shares, on the surface, this agreement increases competitive risks for other suppliers, including Broadcom and AMD.&#34; Bank of America reiterated its &#34;Buy&#34; rating on NVIDIA and maintained a target price of $215

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Bank of America reiterated NVIDIA's "Buy" rating, expecting its $100 billion investment in OpenAI could potentially generate up to $500 billion in revenue in the future. NVIDIA has reached a partnership with OpenAI to build AI data centers and plans to deliver chips by the end of 2026. Analyst Vivek Arya stated that this collaboration could yield a 3 to 5 times return on investment for NVIDIA while increasing competitive risks from other suppliers. The target price remains at $215

- On September 22, Nvidia announced a partnership with OpenAI, involving a massive data center plan and an investment of up to $100 billion.  
- OpenAI will utilize Nvidia's systems to build and deploy at least 10 gigawatts of AI data centers, with chip deliveries expected to start by late 2026.  
- Bank of America estimates that Nvidia's investment could generate revenues of up to $500 billion, reaffirming a "buy" rating for Nvidia with a target price of $215.

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Bank of America reiterates NVIDIA "Buy" rating: Investment in OpenAI could bring in up to $500 billion in revenue