10:48 AM EDT, 09/23/2025 (MT Newswires) -- Nvidia ( NVDA ) and OpenAI's investment and infrastructure partnership is another indication that the artificial intelligence "arms race" is intensifying among Big Tech companies, Wedbush said in a note Tuesday.

Nvidia ( NVDA ) said Monday it plans to invest up to $100 billion in OpenAI under a new collaboration. OpenAI, the parent of ChatGPT, signed a letter of intent to deploy at least 10 gigawatts of Nvidia ( NVDA ) systems for OpenAI's next-generation AI infrastructure.

The announcement "cements further ties between Nvidia ( NVDA ) and OpenAI to lead the AI Revolution taking place front and center while providing OpenAI with ample sources of capital at cheaper costs," Wedbush said.

The "AI Revolution" is heading into its next phase of growth amid an increase in capex spending by tech giants, the note said.

Nvidia's ( NVDA ) recent solid results and demand commentary from Chief Executive Jensen Huang "speaks to the evolution of AI spend now spreading beyond Big Tech to governments, enterprises, energy capacity, and overall infrastructure build outs around the globe."

Wedbush has an outperform rating and $210 price target on Nvidia ( NVDA ).

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