Nvidia's $105 Billion Financing Deal with OpenAI and Quiet Acquisition of Hugging Face
Nvidia is at the center of two major artificial intelligence (AI) infrastructure deals. The first involves a deepening financial partnership with OpenAI, where Nvidia has committed up to $105 billion in residual value guarantees for data centers that will use its GPUs starting in 2028. This circular arrangement allows OpenAI to finance AI infrastructure while ensuring continued demand for Nvidia's hardware. The second deal is a reported acquisition of Hugging Face, an open-source platform where developers share and improve AI models. Unlike the high-profile OpenAI partnership, this move could give Nvidia control over a key marketplace in the AI ecosystem — potentially more valuable than just supplying compute power. The acquisition would position Nvidia to influence both how AI models are developed and deployed. While Wall Street is scrutinizing the financial risks of the OpenAI deal, investors may be overlooking Hugging Face's strategic value for long-term growth.
Tickers: $NVDA
Topics: AI data centers Hugging Face Nvidia OpenAI