Nvidia's AI Expansion Pushes Market Cap Beyond $4 Trillion Amid Investor Concerns
Nvidia's market capitalization has surpassed $4 trillion as the company expands its AI infrastructure, providing chips and software that power data centers worldwide, from Norway to New Jersey.
Throughout 2025, Nvidia announced deals totaling at least $125 billion, including significant investments such as a $5 billion commitment from Intel and a $100 billion investment from OpenAI. Among the notable arrangements is an agreement with CoreWeave that involves a commitment to purchase $22 billion of data-center capacity, with OpenAI receiving $350 million in CoreWeave stock.
Some of these deals exhibit a circular, vendor-financing nature, sparking investor concerns about potential exposure if AI growth slows. Nvidia maintains that it does not depend on such financing structures. An example is the investment linked to Elon Musk’s xAI, where Nvidia invested $2 billion to buy its chips through a special purpose vehicle (SPV), a structure Nvidia has dismissed as an attempt to conceal debt.
Other major collaborations include Oracle's approximately $300 billion data centers dedicated to OpenAI, with OpenAI expected to repay roughly the same amount, and an AMD deal with OpenAI that includes an option for OpenAI to acquire a stake in a Nvidia competitor.
Sovereign deals also play a role, such as South Korea’s acquisition of 260,000 Nvidia chips (valued in the billions) and Saudi Arabia’s Humain project involving up to 600,000 chips under undisclosed terms. Additional partnerships span Italy, France's Mistral, and Deutsche Telekom, all involving substantial yet opaque chip deployments.
OpenAI’s overall commitment of $1.4 trillion to computing capacity to build and operate AI models highlights the massive scale of the AI development effort and underscores the financing risks associated with this rapid expansion.
