BlackRock says Nvidia’s massive deal with OpenAI reflects a new era where artificial intelligence infrastructure spending is no longer optional.
In a new Bloomberg interview, Jay Jacobs, US head of Thematics and Active Equity ETFs at BlackRock, says Nvidia’s up to $100 billion investment in OpenAI is a move to position the chipmaker as a dominant player in a multi-year AI market cycle.
“I think it’s beyond comfort. This is a necessity for some of the leading technology companies. They have a tremendous moat because they have low cost of capital. They have tremendous access to dollars, and they’re able to really kind of leverage their own strengths, which is if you look at a semiconductor company, like owning GPUs, owning this manufacturing process is really valuable in the semiconductor space. That’s the short. That’s the shortfall that’s needed by large language model developers. So this investment across the industry makes a ton of sense.”
Jacobs adds that investors should look at the AI boom in terms of decades, not months or quarters.
“Look, this is a long-term theme. This is a bet for the next five, 10 and beyond years. I’m sure within that time frame, there will be bouts of anxiety. There will be questions around what the valuation should be. But if you take a long-term view of artificial intelligence, we believe this is going to be one of the most powerful drivers of the markets for the next decade and beyond.”
Disclaimer: Opinions expressed at CapitalAI Daily are not investment advice. Investors should do their own due diligence before making any decisions involving securities, cryptocurrencies, or digital assets. Your transfers and trades are at your own risk, and any losses you may incur are your responsibility. CapitalAI Daily does not recommend the buying or selling of any assets, nor is CapitalAI Daily an investment advisor. See our Editorial Standards and Terms of Use.