The global boom in artificial intelligence has created a $5 trillion giant. Nvidia, the chipmaker whose technology underpins the AI revolution, saw its valuation hit $5.05 trillion on Wednesday. This historic first comes as expansive AI investment has pushed the entire US stock market to record highs.
Nvidia’s stock has been on a tear since early 2023, as the industry realized its chips were non-negotiable for AI development. This demand is reflected in a $500 billion order book. The company has far outgrown all competitors, and its value jumped from $4 trillion to $5 trillion in just three months.
This $5 trillion company is not standing still. It just announced a partnership with Uber for robotaxis and a $1 billion investment in Nokia to co-develop 6G. It is also working with the US Department of Energy to build seven new AI supercomputers.
The company’s relationship with OpenAI is also deepening. Nvidia announced a $100 billion investment in the ChatGPT owner, specifically to ramp up computing power by building 10 gigawatts of Nvidia-powered AI datacenters.
President Donald Trump, who owns Nvidia shares, has praised the company’s success. He also hinted at a major win for the company: a potential deal to sell less-powerful chips to China. Despite this optimism, regulators are warning of an AI bubble, pointing to the high failure rate of AI pilot programs as a sign that the hype may be outpacing reality.