A relentless string of blockbuster deals has culminated in Nvidia becoming the world’s first $5 trillion company. The chipmaker’s valuation hit $5.05 trillion on Wednesday, capping a week of announcements that solidified its dominance in the AI and tech sectors.
CEO Jensen Huang first revealed a $500 billion order book, and the good news kept flowing. The company announced a partnership with Uber on robotaxis, a $1 billion investment in Nokia to co-develop 6G, and a deal with the US Department of Energy to build seven new AI supercomputers.
The largest of these was a $100 billion partnership with OpenAI. Nvidia will invest the sum to build at least 10 gigawatts of AI datacenter capacity, a move that secures its role as the primary hardware provider for the ChatGPT owner’s massive expansion plans.
This deal-making, combined with the “ravenous” demand for its chips, explains the stock’s rapid 25% jump from $4 trillion to $5 trillion in just three months. The company’s value now surpasses the individual economies of major nations like India or Japan.
While this AI craze is being hailed as the next industrial revolution, some are urging caution. The Bank of England and the IMF have warned of a bubble, pointing to the high failure rate of corporate AI pilots as a sign that the market’s expectations may be wildly inflated.
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