Buy Hold Rant

Nvidia + OpenAI: The $100B AI Power Play Investors Can’t Ignore

Name: Nvidia + OpenAI: The $100B AI Power Play Investors Can’t Ignore
Uploaded: 2025-09-25T16:45:11Z
Description: Nvidia just made headlines with a massive $100B investment in OpenAI — and the market loved it. But is this a genius strategy or a shady circular deal? In this video, we break down: ✅ Why Nvidia’s investment can be seen as a win-win-win for Nvidia, OpenAI & users ✅ The circular nature of the deal i

9/25/2025, 4:45:11 PM

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Economic Summary

NVIDIA committed a roughly $100 billion structured investment in OpenAI, paid over years by milestones, which strengthens NVIDIA's customer demand for its chips and boosted NVIDIA's market cap immediately.
OpenAI's primary revenue is from users and subscriptions rather than hardware vendors, meaning sustained user growth drives real, recurring demand for AI compute.
There is meaningful competition in AI chips (e.g., Google's TPUs), so NVIDIA's current lead could be challenged and future growth may slow if supply capacity meets demand.

Bullish

NVIDIA's large investment in OpenAI effectively secures a major long-term customer and future chip demand.
OpenAI's revenue from users and rapid growth creates real, continuing demand for compute and chips.
Structured, milestone-based funding spreads NVIDIA's investment over years, reducing upfront risk.

Bearish

Circular investment between NVIDIA and OpenAI may artificially inflate valuations and create feedback risk.
Competitors like Google's TPUs could erode NVIDIA's technological lead and chip dominance.
Buildouts meeting demand could cause a slowdown in growth and reduce future chip purchases.

Bullish tickers

NVDAOPENAI

Bearish tickers

NVDAOPENAI

NVDA

Bullish

Strategic stake in OpenAI secures a major customer and long-term demand for NVIDIA chips amid strong AI revenue trends.

Bearish

Investment's circular effects may inflate NVDA valuation; competitors and demand slowdowns could hurt future growth.

OPENAI

Bullish

Fast-growing software revenue from users and businesses drives real demand for compute, benefiting hardware partners.

Bearish

Valuation may be inflated by large strategic investments and is exposed to capacity and execution risks.

GOOGL

Bullish

Google provides alternative AI hardware (TPUs) that can be adopted by major customers like OpenAI.

Bearish

Google's TPU offering represents competition that could limit rivals' dominance in AI chips.