This article first appeared on GuruFocus.

Sep 23 – Nvidia (NASDAQ:NVDA) is stepping further into artificial intelligence with a plan to back OpenAI with as much as $100 billion. The initiative focuses on building large-scale data centers powered by Nvidia’s chips, reinforcing the company’s position at the heart of the AI supply chain.

The announcement sparked excitement, but the stock didn’t hold its gains. After closing at a record $183.61 on Monday, Nvidia slipped 2% to $180 on Tuesday. Investors are still weighing how quickly the partnership will boost earnings.

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OpenAI intends to deploy around 10 gigawatts of data center capacity using Nvidia systems, including millions of GPUs. Analysts see the move as both strategic and ambitious. William Blair’s Sebastien Naji said Nvidia’s strong cash position allows it to accelerate adoption of AI hardware while supporting a broader ecosystem.

Others struck a more measured tone. Benchmark analyst Cody Acree kept a Buy rating and a $220 price target but said the financial impact may take time to show, since OpenAI already factored heavily into previous forecasts.

The deal follows Nvidia’s recent multibillion-dollar tie-up with Intel (NASDAQ:INTC), pointing to a push beyond chip sales into the infrastructure enabling AI at scale.