Nvidia's Master Plan: Build Alliances & Rule Everything AI

From OpenAI to Intel, Nvidia is securing its moat not just with chips—but with partnerships that will help it dominate for the next 10+ years.

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Hey there,

Every Tuesday, I think I’m done talking about Nvidia. Then they drop news that I’d feel horrible not sharing with you.

This week’s jawdropper? The world’s most valuable company just made two investments that will change everything about the way you invest in AI:

• A $100 billion commitment to help OpenAI build the world's largest AI infrastructure.

• A $5 billion partnership with Intel to develop custom chips combining Nvidia GPUs with Intel CPUs.

Most investors saw these as separate business deals, but they’re not. Together, they showcase Nvidia's master plan: Control every layer of the AI economy—and they’re latest approach is strategic partnerships.

Here's why these deals are brilliant—and what they mean for your portfolio.

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The $100 Billion OpenAI Power Play

At first glance, the OpenAI deal looks pretty straightforward:

• Help build infrastructure.

• Deploy 10 gigawatts of computing power using Nvidia’s Vera Rubin platoform

But dig deeper, and you’ll see that by funding this massive infrastructure deal, Nvidia is accomplishing three critical objectives with a single investment:

1. Locking in guaranteed demand: By hanging OpenAI’s entire future on Nvidia's hardware, Nvidia secures billions of dollars in chip sales for years to come.

2. Deepening the software trap: Remember when I told you about CUDA weeks ago, Nvidia’s proprietary software? Well, OpenAI's LLMs (Large Language Models) are built on it. As they continue to spend billions training AI models on Nvidia’s software, switching to a competitor would be practically impossible—like trying to convert an entire city from English to Mandarin overnight.

3. Becoming AI's backbone: Nvidia is moving far away from just selling hardware. They're positioning themselves as the foundational infrastructure that AI runs on. When people think "AI," Nvidia wants every road to point back to them.

This investment makes Nvidia absolutely indispensable to the most important player in artificial intelligence—OpenAI.

The $5 Billion Intel Surprise