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OpenAI-NVIDIA Deal Signals Next Era of AI and Global Infrastructure Growth
OpenAI and NVIDIA – This week, the spotlight has been on artificial intelligence infrastructure as OpenAI and NVIDIA (NASDAQ: NVDA) announced a groundbreaking US$100 billion strategic partnership. The deal highlights the growing importance of AI compute power while underscoring massive investment opportunities in the data centre and technology sectors worldwide.
OpenAI-NVIDIA’s $100 Billion AI Investment
The OpenAI-NVIDIA partnership is set to deploy at least 10 gigawatts of NVIDIA systems for OpenAI’s next-generation AI infrastructure. This massive deployment will involve millions of GPUs, marking one of the largest AI infrastructure commitments in history.
NVIDIA plans to progressively invest up to US$100 billion in OpenAI as each gigawatt of systems comes online. The first gigawatt deployment is scheduled for the second half of 2026, utilizing NVIDIA’s Vera Rubin platform.
The collaboration continues a decade-long relationship between the two tech giants. OpenAI CEO Sam Altman emphasized that “compute infrastructure will be the basis for the economy of the future,” while NVIDIA CEO Jensen Huang described the investment as “the next leap forward — deploying 10 gigawatts to power the next era of intelligence.”
This strategic alliance complements OpenAI’s existing partnerships with Microsoft (NASDAQ: MSFT), Oracle (NASDAQ: ORCL), SoftBank, and Stargate partners, solidifying its position at the forefront of global AI development.
Keppel DC REIT Expands in Japan
On the real estate front, Keppel DC REIT (SGX: AJBU) has announced the acquisition of Tokyo Data Centre 3 for S$707 million, slightly below its valuation. The facility is fully contracted to a leading global hyperscaler for 15 years, featuring annual rent escalation clauses that provide robust cash flow resilience for dividend-focused investors.
Pro forma calculations suggest this acquisition would increase FY2024 distribution per unit (DPU) by 2.8%, rising from S$0.09451 to S$0.09712. To finance the purchase, Keppel DC REIT launched a non-renounceable preferential offering at S$2.24 per unit, offering 80 new units per 1,000 units held to eligible unitholders.
Post-acquisition, Keppel DC REIT’s portfolio will expand to 25 data centres across 10 markets, with assets under management reaching S$5.7 billion, strengthening its position in the Asian data centre market.
Centurion Accommodation REIT IPO Oversubscribed
Adding to Singapore’s real estate momentum, Centurion Accommodation REIT (SGX: 8C8U) made its public debut this week, with its IPO being oversubscribed. The enthusiastic response highlights investor appetite for stable-yielding REITs in Singapore amid a favorable economic backdrop.
Singapore’s Construction Boom
Meanwhile, Singapore’s construction sector is set to exceed expectations, with demand approaching S$60 billion, according to MayBank (KLSE: 1155). Growth is being driven by mega-projects and lower interest rates, signaling a period of robust expansion for the city-state’s construction industry.
Market Implications
The confluence of AI infrastructure investment, strategic data centre acquisitions, and construction growth paints a bullish picture for institutional investors looking at technology and real estate sectors. The OpenAI-NVIDIA partnership alone underscores the critical role of AI in next-generation compute, while Keppel DC REIT’s Japanese expansion offers long-term income stability for investors.
Singapore’s REIT market, combined with mega-construction projects, suggests a diversified opportunity set for those watching Asia’s growth story. Together, these developments highlight a global appetite for technology-driven assets and resilient infrastructure investments.
Looking ahead, analysts and market participants will be closely monitoring the deployment of NVIDIA systems for AI, dividend growth from data centre acquisitions, and construction sector developments in Singapore. The combination of high-tech AI infrastructure and strategically located REIT assets represents a compelling narrative for long-term investors seeking exposure to both growth and stability.
[…] were not the source of Nvidia’s November decline. AI accelerators are still hard to come by. GPU purchases are still rising from major cloud providers. Workloads are being moved to AI-native platforms by […]