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 the 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.
The partnership will likely boost orders for Hitachi Energy, which accounted for over 20% of the Japanese company’s adjusted EBITA in the fiscal year ended March, wrote Bloomberg Intelligence analysts Takeshi Kitaura and Ian Ma in a note. The “potential for data storage equipment supply” via the tie-up could also help Hitachi’s “struggling” storage unit, they added.
The collaboration comes as OpenAI’s valuation hit $500 billion on Thursday, making it the world’s largest startup, after the ChatGPT operator completed a deal to help employees sell shares.
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