Nvidia is making waves with a $100 billion investment in OpenAI to boost AI infrastructure, sending its shares soaring. Meanwhile, Oracle's stock jumped after a White House announcement about overseeing a new TikTok algorithm for American investors. In a surprising twist, Better Home is catching attention as a meme stock due to a recent endorsement from an investor. Exciting times in the tech sector, with all eyes on these major players!
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Nvidia–OpenAI Strategic AI Buildout
Nvidia signed a letter of intent to invest up to $100 billion to support OpenAI's data centers and AI infrastructure.
The deal could supply at least 10 gigawatts of Nvidia systems and give Nvidia equity in OpenAI, boosting its upside potential.
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Analysts Upbeat On Nvidia's Upside
Analysts see the Nvidia–OpenAI tie-up and a potential China re-entry as factors that could materially raise Nvidia's future estimates.
CFRA upgraded Nvidia to strong buy, citing partnership upside beyond current assumptions.
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Oracle To Secure U.S. TikTok Infrastructure
Oracle is poised to play a security and oversight role in a US re-creation of TikTok's recommendation algorithm under a potential divestiture deal.
The plan would store US user data in an Oracle-managed secure cloud and retrain the algorithm away from ByteDance control.
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- Shares of Nvidia (NVDA) popped today after the company announced that they will invest as much as $100 billion in OpenAI to support new data centers and other artificial intelligence infrastructure, a blockbuster deal that underscores booming demand for AI tools like ChatGPT and the computing power needed to make them run. The companies announced the agreement Monday, saying they’d signed a letter of intent for a strategic deal. The investment is meant to help OpenAI build data centers with a capacity of at least 10 gigawatts of power — equipped with Nvidia’s advanced chips to train and deploy AI models. Investors applauded the tie-up, sending Nvidia shares up as much as 4.5% in New York trading. The shares have now gained about 36% this year, cementing the company’s status as the most valuable business on Earth. OpenAI, meanwhile, is the world’s biggest tech startup, with a valuation of $500 billion.
- Oracle (ORCL) shares soared today after it was confirmed by the White House that they would provide security and help oversee the re-creation of a new US version of TikTok’s algorithm under a deal taking shape to sell the popular Chinese-owned app to a consortium of American investors. The arrangement, outlined by the White House official on Monday, seeks to ensure that the American buyers control TikTok’s recommendation software in the US following a divestiture by its Chinese parent, ByteDance Ltd. Owners of the US-based TikTok would lease a copy of the algorithm from ByteDance that would then be retrained “from the ground up” with Oracle’s oversight, according to the official. Data from US users would be stored in a secure cloud managed by Oracle with controls established to keep out foreign adversaries, including China, the official said. Beijing-based ByteDance would not have access to information on TikTok’s US subscribers, nor would it have any control over the algorithm in the US, the official said.
- Shares of Better Home & Finance Holding Co. (BETR) soared after Eric Jackson said his hedge fund had bet on the stock, echoing the retail-driven rally he kicked off in Opendoor Technologies Inc. in July. Shares of the online mortgage company known as Better rose as much as 176% on Monday, triggering multiple halts for volatility, before paring gains to 47%. They’ve now gained more than 450% so far this year. In series of posts on the social-media site X, Jackson called the stock a “350-bagger,” meaning he sees the shares hitting around $12,000 apiece in two years versus a close of $34.09 on Friday. That would give the company, worth about $521 million at the end of last week, a market value over $180 billion. He said his fund, EMJ Capital, was long the stock.
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