11:39 AM EDT, 09/24/2025 (MT Newswires) -- Nvidia's ( NVDA ) new partnership with Microsoft ( MSFT )-backed (MSFT) OpenAI is the next step in an ongoing tech buildout that will result in trillions being spent on AI infrastructure, Wedbush said in a Wednesday note.

OpenAI signed a letter of intent to deploy at least 10 gigawatts of Nvidia ( NVDA ) systems for its next-generation AI infrastructure, while Nvidia ( NVDA ) intends to invest up to $100 billion in OpenAI under the partnership.

Some investors are "worried about the new frontier broken" with the Nvidia-OpenAI deal, citing concerns about an "AI bubble" and stretched valuations, Wedbush analysts said. The analysts said they view the deal as a "1996 Moment," which was a bull market for tech, rather than a "1999 Moment," which was defined by the dot-com bubble that led to a market crash.

According to the note, more groundbreaking tech deals and partnerships are in store for large US technology companies in the coming months, further escalating the nation's "AI Arms Race" with China.

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