OpenAI is planning data centers that run at gigawatt scale. This is utility-grade power for AI, and it shows that Nvidia (NVDA) is staring at massive demand ahead. Reports say OpenAI is lining up a one-gigawatt site in India and more sites in the United States and elsewhere. If even part of that pipeline lands, Nvidia’s order book gets thicker for quarters, not weeks.
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OpenAI is not talking publicly about how it will fund every site. Even so, the company wants to build out capacity fast, and it is looking for local partners to help move shovels and secure power.
Nvidia Maps the Money
Nvidia’s own math shows how big this can get. Management says a single one-gigawatt “AI super-factory” could require about $35 billion of Nvidia hardware and roughly $15 billion of other gear. This is around $50 billion for one site. If a site scales beyond one gigawatt, the totals go higher.
Nvidia has also told investors to expect trillions in annual AI infrastructure spending by the end of the decade. OpenAI’s plans fit that view. Every new rack that trains or runs large AI models pulls more GPUs, networking, and software into the field.
Oracle Extends the Buildout
OpenAI already has a deal with Oracle (ORCL) to develop 4.5 gigawatts of data-center capacity in the United States. It also announced a one-gigawatt cluster in Abu Dhabi. Add India to that list, and the picture gets bigger. These projects need dense compute, fast networking, and advanced systems that tie dozens of GPUs together as a single machine.
Nvidia’s latest rack-scale platforms are built for exactly this job. As those systems move into full production, each new site turns into a multi-billion-dollar hardware cycle with follow-on orders for upgrades and expansion.
Investors Weigh the Upside
This is why some analysts now think demand for running AI will keep growing at a steady pace. The more people and businesses use AI, the more servers are needed to answer queries in real time. This favors Nvidia’s installed base, its software stack, and recurring upgrades as models get larger.
NVDA shares pulled back after earnings as traders took profits and worried about China sales. However, the core story did not change. If OpenAI and other hyperscalers keep adding power at this pace, Nvidia’s pipeline stays full and visibility improves.
There Are Still Some Risks
Funding is the swing factor. Multi-gigawatt sites need huge capital, steady power, and supply chains that can deliver on time. Any delays in permits, energy hookups, or financing could push schedules out. There is also the competitive drumbeat from alternative chip suppliers and in-house accelerators.
Even with those risks, the near-term markers are as follows. Watch for firm project starts, purchase commitments for the newest rack-scale systems, and signs that inference usage is ramping. If those boxes keep getting checked, Nvidia’s growth story has room to run.
Is Nvidia Stock Still a Buy?
Wall Street analysts remain firmly bullish on Nvidia stock. Out of 38 analysts weighing in over the past three months, 34 recommend a Buy, three suggest a Hold, and only one calls it a Sell. This gives the chipmaker a “Strong Buy” consensus rating.
The average 12-month price target for Nvidia is $208.86, representing nearly 20% upside from its latest price.
