Home » AI Frenzy Lifts Nvidia to $5.05T, Surpassing Major Economies

AI Frenzy Lifts Nvidia to $5.05T, Surpassing Major Economies

by admin477351

The global frenzy for artificial intelligence has lifted Nvidia to a valuation of $5.05 trillion, a staggering figure that is now greater than the individual GDPs of India, Japan, and the United Kingdom. The chipmaker became the world’s first $5 trillion company on Wednesday.

This historic milestone comes just three months after Nvidia first broke the $4 trillion barrier. The company’s stock has surged since early 2023 as the tech world scrambled to acquire its cutting-edge chips, which are essential for powering AI.

Nvidia’s order book now stands at $500 billion. The company is also expanding its reach, announcing a robotaxi partnership with Uber, a $1 billion 6G deal with Nokia, and a massive $100 billion investment in OpenAI to build out its AI infrastructure.

The AI boom, and Nvidia’s central role in it, has been praised by President Donald Trump. Trump, a shareholder, also suggested he would negotiate with China to allow sales of some Nvidia chips, a potentially huge new market.

This rapid, AI-driven growth is not without its critics. The Bank of England and the IMF have both issued warnings about a potential AI bubble. Skeptics point to the high failure rate of corporate AI pilot programs as evidence that the market’s enthusiasm is far ahead of actual business returns.

You may also like