Nvidia continues to advance its AI infrastructure dominance with a series of billion-dollar deals: a potential investment of around $13 billion in Hugging Face, $2.4 billion in financing for Blackwell Ultra data centers, and expanded partnerships with Cisco and Supermicro show how deeply Nvidia is now embedded in the AI value chain. At the same time, more voices are warning of a bubble given the high valuation and the sheer scale of the investment plans.
- According to reports, Nvidia is considering an investment of around $13 billion in Hugging Face to secure access to the AI developer ecosystem.
- Blue Owl is leading a $2.4 billion financing round for IREN's AI data center featuring Nvidia Blackwell Ultra infrastructure.
- According to one analysis, Nvidia added twice as much data-center revenue in a single quarter as AMD generated in total.
- Cisco is expanding its 'Secure AI Factory' partnership with Nvidia to include Supermicro rack-scale systems.
- Despite strong share price gains, commentators warn of a 'bubble within the bubble' regarding Nvidia's $500 billion investment plans.
What new infrastructure deals are securing Nvidia's AI dominance?
Alongside the potential Hugging Face investment, the $2.4 billion financing led by Blue Owl for IREN's AI data center with Nvidia Blackwell Ultra infrastructure is drawing particular attention. At the same time, Cisco is expanding its 'Secure AI Factory' partnership with Nvidia to include rack-scale systems from Supermicro, further cementing Nvidia hardware's position in enterprise data centers. Optics supplier Lumentum Holdings is also reported to have shifted its AI data center investment narrative through an Nvidia deal and a strategic optics pivot.
How strongly is Nvidia's data center business growing compared to competitors like AMD?
According to a recent analysis, Nvidia generated twice as much additional data-center revenue in a single quarter as AMD's total revenue in that segment. This growth dynamic underscores why institutional investors like Blue Owl are willing to provide billion-dollar financing specifically for Nvidia-based infrastructure such as Blackwell Ultra systems.
Is Nvidia about to acquire Hugging Face?
According to reports, Nvidia could invest around $13 billion in Hugging Face to secure strategic access to the developer community and AI model demand. Details on the exact structure of the deal have not yet been confirmed.
Are analysts warning of an Nvidia bubble?
Yes, one commentary describes Nvidia's roughly $500 billion investment plans as 'bubbles within bubbles.' At the same time, other observers point to the stock's very high price-to-earnings valuation, yet continue to hold their Nvidia position despite the high P/E ratio.
In the stock market, Nvidia remains one of the most heavily traded stocks overall – alongside Tesla and Apple, it ranks among the most active names of the day. The strong rally has also affected income strategies: one piece shows how the previously attractive 10.7% yield of the covered-call ETF JEPQ lost its appeal following Nvidia's recent rally, as options strategies tend to lag pure stock performance during sharp price increases. Despite the very high price-to-earnings ratio, one Motley Fool commentator continues to hold his Nvidia position.
Nvidia also remains active in the gaming business: early unofficial comparisons of DLSS 5 across ten modern games show progress in neural rendering, while reports indicate that a media embargo on official DLSS 5 tests is already in effect, with first videos reportedly in preparation.
