Nvidia’s $100 Billion OpenAI Partnership Sends Stock Soaring - But Antitrust Regulators Are Circling

Nvidia just placed a $100 billion bet on AI's future—and Wall Street is loving every minute of it.

The chipmaker's massive OpenAI deal sent NVDA shares skyrocketing, proving once again that in today's market, throwing billions at artificial intelligence is the quickest path to investor euphoria.

Regulatory Red Flags Emerge

While the stock surge dominates headlines, antitrust watchdogs are sharpening their knives. The sheer scale of this partnership—$100 billion concentrated between two tech titans—has competition authorities questioning whether we're witnessing innovation or market domination in disguise.

Finance's AI Obsession Reaches Fever Pitch

Another day, another massive tech deal that'll either revolutionize computing or become a case study in bubble economics. Wall Street analysts cheer while regulators scramble—some things never change in the chase for the next big thing.

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The MOVE highlights the increasing expense of competing in artificial intelligence. The cost of chips, data centers, and power now forces only a handful of companies to play at the top level.

Antitrust and Market Impact

However, this deal between two AI giants has raised some concerns; Nvidia holds between 80% and 95% of the market for chips used in AI data centers, while OpenAI is one of the leading developers of AI models. Legal experts point out that when one company funds another while also selling its critical hardware, the deal can tilt the field. Andre Barlow, an antitrust lawyer, told Reuters the deal “raises significant antitrust concerns.” Rebecca Haw Allensworth, an antitrust professor at Vanderbilt, also noted that Nvidia and OpenAI are “financially interested in each other’s success,” which creates incentives that may hurt rivals.

Regulators in Washington have already split oversight duties for the AI sector. The Department of Justice looks into Nvidia, while the Federal Trade Commission focuses on OpenAI and its partner Microsoft (MSFT). The Justice Department has stressed that it wants to prevent unfair limits on access to key tools like chips and data centers. Investors, however, welcomed the news. Nvidia’s stock rose more than 3% after the deal and added about $200 billion in market value, pushing the firm closer to a $4.5 trillion valuation.

Is Nvidia Stock a Buy?

Nvidia continues to hold the Street’s endorsement with a Strong Buy consensus rating. The average NVDA price target is $212.06, implying a 19.83% upside from the current price.