Hitachi Teams Up With OpenAI To Power AI Boom

Hitachi (HTHIY) is jumping into the heart of the AI boom with a new partnership with Microsoft MSFT-backed OpenAI, aiming to build out the infrastructure that keeps artificial intelligence running.

Under the deal, Hitachi will provide the nuts and bolts for AI data centers everything from power transmission to cooling and distribution equipment while OpenAI brings its powerful language models to the table. Hitachi plans to plug that technology into its Lumada digital platform and explore new ways businesses can use it.

The agreement was made official in Tokyo, where Hitachi President Toshiaki Tokunaga and OpenAI CEO Sam Altman signed a memorandum of understanding. For Hitachi, it's a chance to both expand its role in the fast-growing AI supply chain and bring cutting-edge AI tools into its own ecosystem.

Investors clearly liked what they saw. Hitachi stock surged 10% on Friday in Tokyo, signaling confidence that this tie-up could give the company a fresh edge in both infrastructure and digital services.