Scrapping export restrictions on top-of-the-line GPU chips because of DeepSeek's s AI success would hand China a major win, says Toner.

When OpenAI released ChatGPT in 2022, companies started spending billions on GPUs to train AI models. Nvidia led the market for graphics processing units (GPUs), so it was the right company at the right time to deliver monster returns to investors.

OpenAI has been cozying up to the government for a few years now, and it’s been turbocharged under the Trump Presidency. Earlier this week, Altman announced ChatGPT Gov, a specialized version of its chatbot for government applications.

After announcing a partnership with OpenAI last year, the US National Laboratory will now install the company’s latest reasoning models on its Nvidia-powered Venado supercomputer “to conduct national security research.

Invest in Nvidia Corporation as AI spending surges. Recent dip offers a buying opportunity. Read my in-depth look at NVDA stock and its growing opportunities.

OpenAI is in talks for an investment round to raise nearly $40 billion that would value the AI startup at up to $340 billion, the Wall Street Journal reported on Thursday.

A new investment from the Japanese conglomerate would be separate from the $100 billion tied to a project announced at the White House last week.

Importantly, several Wall Street analysts have updated or reiterated their forecasts since DeepSeek published its research paper last week, and they all see upside in Nvidia stock from its current price of $128 per share. Gil Luria at D.A. Davidson set his target price at $135 per share, implying a 5% upside.

Data center technology spending skyrocketed 34 percent in 2024, according to Synergy Research Group. It is soaring past a half a trillion dollars in the first month of 2025 as banks and technology vendors vie to build out massive AI compute.

The assertions about DeepSeek have sparked concerns over the eyewatering sums tech giants are spending on AI — but many experts are urging scepticism.

The tech giant’s sales of apps and services helped profit grow 7 percent from a year ago, even as the company contended with slumping sales in China.