Nvidia’s (NVDA) CEO Jensen Huang and OpenAI’s Sam Altman are set to commit billions of dollars in UK data center investments to power artificial intelligence (AI) growth in the country, Bloomberg reported. The CEOs of the two companies are expected to announce their investments when they visit the UK as part of a delegation of U.S. executives, at the same time as President Donald Trump.
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Nvidia and OpenAI to Pledge Huge Investments in UK Data Centers
Citing sources, Bloomberg stated that Nvidia and ChatGPT maker OpenAI are collaborating with London-based data center company Nscale Global Holdings Ltd. regarding the planned investments in the UK.
In fact, other U.S. companies across many industries are expected to announce investments worth “tens of billions of dollars” in the UK. Given concerns over dismal growth, business leaders and politicians across Europe have been pushing for increased investments to drive generative AI growth in the region.
Notably, in January, UK Prime Minister Keir Starmer announced a plan to “turbocharge AI” via investments in data centers and advanced chips. He also spoke about establishing AI growth zones to speed up approvals for AI infrastructure and provide the electricity required to power data centers.
OpenAI seeks to expand its commercial operations in Europe. The company is aggressively expanding its footprint and making significant investments to capture AI opportunities. Earlier this year, OpenAI, along with Japan’s Softbank (SFTBY) as a lead partner, pledged a combined $500 billion to build data center infrastructure in the U.S. under the Stargate project. Meanwhile, Nvidia is exploring significant growth opportunities in sovereign AI.
Is Nvidia Stock a Good Buy?
Given solid demand for its AI graphics processing units (GPUs), Wall Street has a Strong Buy consensus rating on Nvidia stock based on 36 Buys, two Holds, and one Sell recommendation. The average NVDA stock price target of $210.95 indicates 19.1% upside potential from current levels.
