Nvida Stock Surges After Announcing $100 Billion OpenAI Investment

The biggest vendor financing circle jerk in world history got its latest thrust just after 12pm ET when Nvidia announced (with a CNBC film crew ready to interview Sam Altman and Jensen Huang the moment the press release hit) that it will invest as much as $100 billion in OpenAI to support the building of new data centers and the infrastructure needed to power artificial intelligence workloads.

Translation: tomorrow OpenAI will announce it will purchase $100 billion in equipment from Nvidia. Then one day later Nvidia will double down in its investment in OpenAI, and so on, for as long as the circle jerk keeps lifting all the AI boats floating on a sea of…er… liquidity.

The two signed a letter of intent for a strategic deal, Nvidia said Monday in a statement.

“To support this deployment including data center and power capacity, Nvidia intends to invest up to $100 billion in OpenAI as the new Nvidia systems are deployed,” the company said in the statement.

With NVDA stock ominously in the red today and threatening to burst the AI bubble, the press release came strategically at just the right time to push NVDA stock up 4% and just shy of all time highs…

… and since there is virtually no spare cash flow available to fund this latest pipe dream, and all the funding will need to come from private debt issuers, we wanted to bring you a snapshot of where the Blackstone Secured Credit fund was trading today.