Nvidia (NASDAQ:NVDA) is currently at the epicenter of Wall Street’s artificial intelligence frenzy, cementing its position as the cornerstone of Big Tech’s future ambitions as companies commit to unprecedented chip spending.
This environment has propelled Nvidia’s shares beyond their 52-week high of $188.14 on Thursday, underscoring its pivotal role in the global AI infrastructure race.
Microsoft’s Multibillion-Dollar AI Commitments
The massive capital outlay is most evident in the aggressive strategy pursued by Microsoft (NASDAQ:MSFT).
Also Read: Nvidia Smashes 52-Week High As Robots And AI Take Off
Microsoft is striking multibillion-dollar deals with specialized neocloud providers to secure scarce AI computing power, a strategy that simultaneously accelerates its own AI efforts and guarantees demand for Nvidia’s graphics processing units.
This includes a monumental pact with Amsterdam-based Nebius (NASDAQ:NBIS), valued at up to $19.4 billion, granting Microsoft access to more than 100,000 of Nvidia’s GB300 GPUs, Bloomberg reported on Thursday, citing people familiar with the deal.
This arrangement allows Microsoft to redirect internal AI training workloads, including large language models and a new consumer AI assistant, to Nebius facilities, thereby freeing its own data centers to serve paying enterprise customers.
This Nebius deal is part of a broader $33 billion wave of commitments that Microsoft has made to smaller neocloud firms, including CoreWeave (NASDAQ:CRWV), Nscale, and Lambda.
For Nvidia, these arrangements translate into a steady, bulk-purchase surge of demand, making it the backbone of both Big Tech and the fast-growing neocloud sector.
Meta Accelerates AI Investments
In parallel, Meta Platforms (NASDAQ:META) is accelerating its AI push with aggressive infrastructure investment. CEO Mark Zuckerberg has committed up to $72 billion in capital expenditures for 2025, primarily allocated toward AI, alongside securing $29 billion in financing for a massive data center in Louisiana.
Beyond hardware, Meta is leveraging generative AI to unlock value beyond ads, rolling out Business AI, a digital assistant designed to deliver personalized product recommendations and streamline purchases through chat.
By pitching Business AI as a more cost-effective alternative to market offerings, Meta aims to leverage generative AI as a new revenue stream while enhancing the effectiveness of its ads, CNBC reported on Thursday.
The company is also reportedly considering the acquisition of GPU startup Rivos, a move that would give Meta greater control over the advanced systems powering its AI models.
While Meta already develops in-house AI chips under its Meta Training and Inference Accelerator program, it continues to splurge on GPUs from external partners such as Nvidia.
OpenAI Surges to $500 Billion Valuation
Further highlighting the investment inflection point is OpenAI’s valuation, which has surged to $500 billion amid the AI frenzy, eclipsing Elon Musk’s SpaceX and making it the world’s most valuable startup.
Current and former employees of the company behind ChatGPT sold about $6.6 billion worth of shares to investors, including Softbank (OTC:SFTBY), Thrive Capital, Dragoneer Investment Group, Abu Dhabi’s MGX, and T. Rowe Price.
With OpenAI reporting $4.3 billion in revenue for the first half of 2025 and targeting $13 billion for the whole year, the milestone confirms how rising AI investment is driving record valuations.
The company continues to strengthen its strategic alliances, holding talks with Microsoft to restructure as a for-profit entity while securing massive backing from Nvidia and Oracle (NYSE:ORCL).
Nvidia is planning a $100 billion investment in OpenAI, expected to yield $300 billion–$500 billion in revenue and cement Nvidia as OpenAI’s preferred partner, reinforcing its AI market dominance. A Bank of America analyst maintained a Buy rating, viewing the deal as a strategic, high-return move.
Nvidia Stock Hits Record Highs
The market’s acknowledgment of Nvidia’s hardware dominance is clear: the stock gained over 41% year-to-date, hitting its all-time high on Tuesday, becoming the first company to reach a $4.5 trillion cap.
Price Action: NVDA stock was trading higher by 1.36% to $189.78 at last check Thursday.
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