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Rarely in life do you get a win-win scenario, but Nvidiaspending spree equal in intensity to a tourist shopping for tax-free goods in Japan — announced Monday an investment of up to $100 billion in OpenAI.
Here’s the clever bit. OpenAI is planning to build systems with Nvidia’s artificial intelligence chips. Each one will require 10 gigawatts of power, which will comprise around 4 million to 5 million graphics processing units, Nvidia CEO Jensen Huang told CNBC. And Nvidia will make its first investment of $10 billion when OpenAI finishes building its first gigawatt of Nvidia systems.
“Nvidia invests $100 billion in OpenAI, which then OpenAI turns back and gives it back to Nvidia,” Bryn Talkington, managing partner at Requisite Capital Management, told CNBC after the announcement. “I feel like this is going to be very virtuous for Jensen.”
To borrow the lyrics from hit musical Chicago: When you’re good to Nvidia, Nvidia’s good to you.
In other tech news, Apple’sthe green for the year — the last of the “Magnificent Seven” to do so. With Apple’s price increase for its iPhone 17 Pro, however, my bank account might be the one turning red.
— Kif Leswing and Ashley Capoot contributed to this report
What you need to know today
Nvidia to invest up to $100 billion in OpenAI. The ChatGPT-maker plans to build Nvidia-based data centers that require 10 gigawatts of power — that’s around 5 million chips. Nvidia will invest the first $10 billion when OpenAI completes the first gigawatt.
H-1B changes unleash a global scramble. On Friday, Trump hiked the visa’s fee to $100,000, sowing confusion among Indian and Chinese nationals.Nvidia and OpenAI said the U.S. needs the smartest people — but analysts think it could be an opportunity for other countries.
Fed governors differ on where rates should be. Stephen Miran on Monday said that the Trump administration’s policies warrant a lower rate. But St. Louis Fed President Alberto Musalem on the same day said there is “limited room for easing further.”
U.S. stocks hit records upon records. All three major U.S. indexes rose Monday, hitting intraday highs and closing at fresh records. Asia-Pacific markets traded mixed Tuesday. Taiwan’s benchmark Taiex rose to hit a new record as well.
[PRO] The U.S. government is facing a shutdown. If Republicans and Democrats don’t agree on a proposal to keep the government funded, it will shut down after Sept. 30. But does the stock market care?
And finally…
India is betting $18 billion to build a chip powerhouse. Here’s what it means
India is one of the world’s largest consumers of electronics, but it has no local chip industry and plays a minimal role in the global supply chain. New Delhi’s “Semiconductor Mission” aims to change that.
The ambition is bold. It wants to create a full supply chain — from design to fabrication, testing and packaging — on Indian soil. Yet progress so far has been uneven, and neither the investments nor talent pool is enough to make India’s chip ambitions a reality, say experts.
— Priyanka Salve
International: Top News And Analysis
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