Nvidia (NVDA) is poised for increased demand as OpenAI expands its plans for data centers, potentially onboarding facilities running at gigawatt scales. Reports indicate OpenAI is eyeing a one-gigawatt facility in India, in addition to sites in the U.S. and the Middle East, representing billions in hardware orders. Each one-gigawatt AI super-factory could require approximately $35 billion worth of Nvidia hardware, plus $15 billion for networking infrastructure, totaling around $50 billion per site. OpenAI’s partnership with Oracle (ORCL) aims to deliver 4.5 gigawatts of capacity in the U.S., complemented by a one-gigawatt cluster in Abu Dhabi. While challenges like financing, energy supply, and competition exist, Nvidia maintains a competitive edge in AI infrastructure due to its hardware and software solutions. Investors should monitor confirmed project initiations, secure purchase orders, and the ongoing rise in AI model usage as critical indicators of Nvidia’s growth potential.
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