Hitachi Shares Soar Following Strategic Partnership with OpenAI

Hitachi Shares Climb Most Since April After OpenAI Partnership

Hitachi Ltd. shares jumped as much as 9.3%, the most since April 10, after the Japanese electronics and industrial firm entered into a strategic partnership with OpenAI to collaborate on energy, artificial intelligence and other areas. Hitachi and OpenAI signed a memorandum of understanding on Oct. 2, the Japanese company announced in a post on social media site X. The tie-up will involve collaboration on Hitachi's energy and power grid operations, cooling equipment, storage and its digital solutions hub Lumada, a company representative told Bloomberg.

Hitachi shares surge on OpenAI partnership By Investing.com

Investing.com-- Hitachi Ltd (TYO:6501) shares surged on Friday after the Japanese industrial conglomerate entered a partnership with OpenAI to collaborate on energy and generative artificial intelligence. Hitachi shares jumped as much as 9.5% to 4,285.0 yen, and were the best performers on the Nikkei 225, which jumped 1.5%. Hitachi and OpenAI signed a memorandum of understanding to collaborate on energy technology for the AI industry. CEO Tokshiaki Tokunaga met OpenAI chief Sam Altman in Tokyo this week, Hitachi said in a post on social media site X. Bloomberg reported the partnership will involve Hitachi's energy and power grid operations, and will also involve its cooling, storage, and digital solutions hub Lumada. The partnership is expected to support Hitachi Energy, which manufactures electricity and transmission equipment that is crucial for data centre operations. The company also provides services for renewable energy. Optimism over the OpenAI partnership drove gains in broader Japanese markets, especially those with exposure to chipmaking and AI. Renesas Electronics Corp (TYO:6723) rallied 8% and was the second-best performer on the Nikkei behind Hitachi. Advantest Corp. (TYO:6857) and Tokyo Electron Ltd. (TYO:8035) rose 3.4% and 2.3%, respectively. Tech conglomerate and major OpenAI investor SoftBank Group Corp. (TYO:9984) rose 3.6%.

Hitachi Shares Soar on Partnership With OpenAI

Shares of Hitachi surged after the Japanese electronics and industrial giant formed a partnership with OpenAI, one of several commitments the AI startup made as part of Sam Altman's dealmaking trip to Asia. Hitachi's stock climbed as much as 9.9% to 4,285 yen in Tokyo trading. The gain, if sustained, would be its largest intraday jump in nearly six months. Japan's benchmark Nikkei Stock Average was recently 1.5% higher on Friday. The advance came a day after OpenAI signed a preliminary deal with Hitachi during a meeting in Tokyo between the chief executives of both companies. Under the agreement, the Japanese conglomerate will support OpenAI in developing AI infrastructure, including providing power transmission and distribution equipment to the U.S. startup's data centers, The Wall Street Journal reported, citing people familiar with the matter. OpenAI, meanwhile, will provide its models and other technologies to Hitachi. Hitachi said in a post on X that the two companies signed a memorandum of understanding to collaborate on sustainable and plentiful energy to power the growth of artificial intelligence. The agreement followed initial deals OpenAI struck with Samsung Electronics and SK Hynix earlier this week for its Stargate infrastructure project. Shares of Samsung and SK Hynix surged on Thursday. News Corp, owner of The Wall Street Journal and Dow Jones Newswires, has a content-licensing partnership with OpenAI.