A mega-project with an open end
According to NVIDIA, the cooperation with OpenAI is expected to enable a new generation of data centers—around ten gigawatts of computing power are to be created, powered by millions of GPU systems on the upcoming Vera-Rubin platform. CEO Jensen Huang speaks of a "leap into the next era of intelligence." However, the plan has a weakness: OpenAI is supposed to finance the project largely on its own, and it is unclear where the billions will come from. Estimates suggest the endeavor could become significantly more expensive than previously known.
Experts see "circular financing
Ex-Baillie Gifford fund manager James Anderson warned in the Financial Times that the deal reminded him of "the last months of the dotcom bubble." Analyst Stacy Rasgon from Bernstein also expressed concerns to Bloomberg: NVIDIA had already invested in numerous AI startups, which later bought the company's GPU chips again - a closed loop that could artificially inflate valuations.
Similarly critical is Jay Goldberg from Seaport Global Securities: The behavior in the market increasingly resembles "bubble-like conditions." Particularly explosive is the fact that according to Reuters, NVIDIA brings in capital but does not receive voting rights at OpenAI – an indication that the risk mainly lies on the chip manufacturer's side.
Remembrance of 1999
For many market observers, the deal evokes memories of the late 1990s: billion-dollar investments, unclear business models, and a growing belief in unlimited growth. "Valuations are rising faster than real profits - this is always a warning sign," commented an analyst anonymously to Investing.com.
Nevertheless, the market remains optimistic. According to TipRanks, 35 out of 38 analysts continue to recommend buying NVIDIA stock. The price increased by 3.5 percent to 163.30 euros on Monday – a sign that investors are betting on the future of AI despite the warnings.
Between Innovation and Illusion
Whether the billion-dollar deal marks the beginning of a new growth phase or heralds the turning point of an overheated euphoria is open. What is certain is only this: NVIDIA is at the center of a market that is transforming at record speed – and where the lines between innovation and illusion are increasingly blurring.
