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Nvidia Steps Up AI Factory Buildout With Corning and IREN Deals as Intel’s AI-Fueled Rally Accelerates

Critics question if Nvidia’s cash push funds buyers instead of confirming real demand.

Overview

  • Nvidia struck two major agreements this week, announcing a Corning partnership on May 6 to expand U.S. optical capacity and an IREN pact on May 7 that includes rights to invest up to $3.2 billion and $2.1 billion and plans to deploy up to 5 gigawatts of Nvidia AI infrastructure.
  • Nvidia’s 2026 investment commitments have topped $40 billion across suppliers, data center partners, and AI model startups, and its earlier $5 billion Intel bet has swelled to more than $25 billion in value in recent months.
  • Analysts warn that some deals look circular because Nvidia is investing in companies that then buy its GPUs, a setup compared to vendor financing that could blur how much demand is organic if AI spending slows.
  • Intel shares jumped 14% on Friday and are up about 116% over the past month after a first‑quarter beat and reports of preliminary talks to manufacture chips for Apple, reinforcing the AICPU story that bulls say could lift data center sales.
  • Nvidia reported $215.9 billion in fiscal 2026 revenue with $193.7 billion from Data Center, more than eleven times AMD’s $16.6 billion in that segment, highlighting how AI infrastructure spending is concentrated with one dominant supplier.