Nvidia (NVDA) shares moved higher in Tuesday trading, with the stock rising about 1.36% to $185.13 as investors reacted to a major new artificial intelligence partnership involving the chip giant. The move came after Nvidia said it would supply up to 1 gigawatt of next-generation AI chips to Thinking Machines Lab, a startup founded by former OpenAI CTO Mira Murati.
The announcement adds another chapter to Nvidia’s rapid expansion across the artificial intelligence ecosystem. The company said its upcoming Vera Rubin architecture chips will power large-scale training and inference systems for Thinking Machines, with deployment expected to begin early next year.
For investors, the deal signals that demand for high-performance AI compute infrastructure remains strong, reinforcing Nvidia’s position as the dominant supplier of hardware used to train and run advanced AI models.
Nvidia shares rise as AI demand continues
Markets have closely followed Nvidia’s role in the global AI boom, and deals like this one help explain why the company has remained one of the most valuable semiconductor firms in the world. Nvidia’s chips power many of the world’s largest data-center AI clusters, including systems built by cloud providers, research labs, and technology companies.
The new partnership with Thinking Machines Lab expands Nvidia’s footprint in the next wave of AI startups. Murati launched the company in 2025 after leaving OpenAI, where she previously served as chief technology officer and briefly stepped in as CEO during the leadership turmoil involving Sam Altman.
Her new venture aims to develop advanced AI systems that can be deployed across enterprises, research institutions, and scientific organizations. Nvidia said the collaboration will also include work on training and serving systems optimized for Nvidia architectures.
Strategic investment strengthens partnership
Alongside the hardware agreement, Nvidia confirmed it will make a “significant investment” in Thinking Machines Lab to support the company’s long-term growth. Financial details of the investment were not disclosed.
Such investments have become increasingly common in the AI industry. Chipmakers including Nvidia and AMD have begun backing AI startups that rely heavily on their hardware platforms, strengthening long-term partnerships and expanding their ecosystems.
Supporters say the strategy helps accelerate innovation by giving new AI companies access to cutting-edge compute infrastructure. Critics, however, argue the approach could create a form of circular investment where startups use funding to purchase more chips from the same companies backing them.
Nvidia executives have pushed back on those concerns, saying demand for AI computing power remains extremely strong across industries.
Nvidia’s AI expansion continues
The Thinking Machines deal comes as Nvidia continues an aggressive push across the AI infrastructure landscape. In recent months the company has announced partnerships with major technology firms and networking providers to expand the capabilities of its data-center platforms.
Earlier this month Nvidia revealed agreements with optical technology companies Coherent and Lumentum aimed at improving high-speed data transfer inside AI data centers. The company has also been working closely with major customers building massive AI clusters.
Nvidia’s influence in the AI sector has grown rapidly as demand for large-scale machine learning systems accelerates. Many advanced AI models require thousands or even tens of thousands of GPUs working together, a market Nvidia currently dominates.
Strong financial performance fuels optimism
Investor enthusiasm for Nvidia has also been supported by strong earnings growth. In its most recent quarterly report, the company posted earnings per share of $1.30 on revenue of $57.01 billion, easily surpassing analyst expectations.
The company’s data-center division — which includes AI processors used by cloud providers and technology companies — generated $51.2 billion in revenue. That figure exceeded Wall Street estimates and highlights how central AI infrastructure has become to Nvidia’s business.
Nvidia also issued strong forward guidance, projecting fourth-quarter revenue of roughly $65 billion, above analyst expectations of about $62 billion.
Why investors are watching NVDA closely
With a market capitalization above $4 trillion and shares near record levels, Nvidia remains one of the most closely watched stocks on Wall Street. Analysts say the company’s ability to maintain its leadership in AI hardware will likely determine whether the current rally can continue.
The Thinking Machines partnership reinforces the idea that Nvidia’s technology remains at the center of the global AI build-out. As more companies develop advanced AI models and large-scale data centers, demand for Nvidia’s GPUs could remain strong.
Investors can track the latest updates on Nvidia through financial platforms such as Yahoo Finance’s NVDA stock page and the company’s official website at Nvidia.com.
For now, Tuesday’s move higher in NVDA reflects the market’s view that Nvidia’s AI leadership remains firmly intact. As new startups and major technology companies race to build powerful AI systems, Nvidia continues to position itself as the core supplier of the computing power driving that revolution.
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