Nvidia CEO Jensen Huang has characterized his company\u2019s $100 billion OpenAI investment as an opportunity to invest in the next \u201cmultitrillion-dollar\u201d company. <\/p>\n
Nvidia itself is part of that club, with a market valuation of $4.5 trillion<\/a>.<\/p>\n Investments like Nvidia\u2019s in OpenAI are predicated on \u201cthe confidence in the revenues\u201d a company can sustain, Huang said on the \u201cBG2\u201d technology podcast<\/a>. <\/p>\n Nvidia and OpenAI already have an indirect collaboration, through the cloud-computing darling CoreWeave<\/a>, based in New Jersey, which has a standing agreement with OpenAI to sell Nvidia systems to OpenAI.<\/p>\n One of CoreWeave\u2019s biggest investors? Nvidia. <\/p>\n There are other players in the thicket. Oracle has said it will spend about $40 billion on Nvidia\u2019s chips to power one of OpenAI\u2019s data centers. <\/p>\n Oracle and OpenAI are also collaborating with Japan\u2019s SoftBank group on plans to spend $500 billion on additional data centers in a project known as Stargate.<\/p>\n Nvidia is a \u201ccore technology partner<\/a>\u201d to the Stargate deal. SoftBank owns a $3 billion stake in Nvidia.<\/p>\n An OpenAI representative referred NBC News to CFO Sarah Friar\u2019s recent comments to CNBC<\/a>, in which she discussed the company\u2019s need for additional computing power. But she did not directly address the \u201ccircular\u201d question. <\/p>\n Nvidia and CoreWeave declined to comment. Representatives for Oracle and SoftBank did not respond to requests for comment. <\/p>\n To some investment advisers, the Nvidia-OpenAI deal is especially reminiscent of the ones announced in the lead-up to the 2000 dot-com bubble burst.<\/p>\n In March of that year, the tech-heavy Nasdaq Composite stock index fell by 77% and wiped out billions of dollars in market value. <\/p>\n