Jim Cramer Believes “NVIDIA is Making a Very Smart Investment in OpenAI”

NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer shed light on. Cramer discussed the company’s recent deal with OpenAI. He remarked:

“It wasn’t until Oracle’s announcement of nearly $500 billion in orders that I myself started to worry. We quickly learned that a significant portion of those orders came from OpenAI, and I don’t know how OpenAI can raise the money it needs without taking on huge amounts of debt. Although this week, NVIDIA committed to investing a hundred billion dollars in their expansion over time, but not upfront. I heard critics say this deal is what’s known as circular vendor finance, meaning a supplier giving a customer money to buy product.

I look at it very differently. I think NVIDIA is making a very smart investment in OpenAI, which could end up being worth a trillion dollars when it comes public, maybe more. It could give NVIDIA a monster return. The deal makes sense for both sides, which is really what matters.”

Photo by Javier Esteban on Unsplash

NVIDIA Corporation (NASDAQ:NVDA) develops GPUs, AI platforms, data center solutions, and networking technologies for industries spanning gaming, visualization, and automotive.

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Disclosure: None. This article is originally published at Insider Monkey.