Nvidia’s Landmark OpenAI Agreement Awaits Final Signatures

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While Nvidia's CEO Jensen Huang commanded significant media attention last week with new partnership announcements, a key revelation tempered the expansion narrative. The company's monumental infrastructure alliance with OpenAI, heralded as historic, has yet to be finalized through a signed contract. This critical detail emerged even as Nvidia commits billions to other software collaborations.

Speaking at the UBS Global Technology and AI Conference, Chief Financial Officer Colette Kress provided a sobering update on the infrastructure project first announced in September. Kress confirmed that the planned collaboration remains governed by a non-binding Letter of Intent. This status means the arrangement to supply at least 10 gigawatts of Nvidia's systems is not yet cemented.

For investors assessing the company's guidance, this potential revenue stream is notably absent from Nvidia's current booking forecast of $500 billion for 2025 and 2026. Despite the delay in formalizing the agreement, Kress underscored the strength of the decade-long relationship with the AI research firm, reiterating Nvidia's position as OpenAI's "preferred partner."

Concurrent Strategic Moves: A $2 Billion Bet on AI-Driven Design

Parallel to the ongoing OpenAI negotiations, Nvidia is actively advancing its strategic interests elsewhere. The chipmaker disclosed a substantial $2 billion strategic investment in software specialist Synopsys. This multi-year partnership is squarely aimed at leveraging artificial intelligence to dramatically accelerate the semiconductor design process.

Jensen Huang highlighted the transformative potential, noting that workflows previously consuming weeks could be completed in mere hours. The initiative seeks to merge Nvidia's computational prowess with Synopsys's industry-leading design software. Market response to this ecosystem-strengthening move has been favorable.

Analyst Sentiment Remains Upbeat

Despite the open questions surrounding the OpenAI contract, analyst outlook continues to be predominantly positive. Morgan Stanley recently raised its price target for Nvidia shares, citing the firm's dominant position in the AI chip market and robust demand for its new Blackwell architecture. The investment bank also downplayed concerns about mounting competition from rivals like Google or AMD, viewing them as overstated.

This optimism is further bolstered by an expanded partnership with Amazon Web Services (AWS). The collaboration focuses on integrating Nvidia's networking technology into Amazon's proprietary chip architecture, a move that deepens Nvidia's embedded role within the cloud computing market.

On the Frankfurt exchange, Nvidia shares closed at €156.66 this past Friday, indicating a period of mild consolidation. The stock currently trades approximately 13% below its 52-week high, yet maintains a year-to-date gain exceeding 16%.

Looking Ahead: Contract Finalizations and Financial Milestones

The coming months present several concrete milestones likely to influence the stock's trajectory. Investors are primarily focused on the completion of the OpenAI agreement, which would provide greater visibility into long-term order books. Attention is also turning to the next quarterly earnings report, anticipated for late February 2026, which should offer crucial insights into the production ramp-up of the Blackwell chips.