Nvidia touches $1 trillion mark thanks to the AI boom

The chip manufacturer Nvidia has achieved a remarkable milestone by becoming a $1 trillion company. This surge in valuation can be attributed to the increasing demand for generative artificial intelligence tools among tech companies of all sizes.

AI tools have taken center stage in recent events like Google I/O and Microsoft Build, with Nvidia emerging as a pivotal supplier of chips to enterprises venturing into AI-driven innovations.

During Nvidia's recent Computex 2023 keynote, the company made several significant announcements in the realm of AI.   This included a demonstration of games utilising their Avatar Cloud Engine (ACE) for Games, which enables seamless natural language input and responses. 

Nvidia also unveiled its latest innovation, the GH200 Grace Hopper Superchip, powering a cutting-edge supercomputer capable of delivering exaflops of GPU performance.

With a market capitalisation of $1 trillion, Nvidia joins the league of top-tier US stocks dominated by tech giants such as Apple, Microsoft, Amazon, and Google's parent company, Alphabet.

Starting as a niche player in 3D computer graphics three decades ago, Nvidia's chips now serve as the backbone of AI applications, including ChatGPT—an influential chatbot developed by OpenAI.

This surge in demand stems from the race among big tech companies and cloud computing providers to upgrade their data center technologies, in the new era of computing.

Other companies that stand to benefit from the AI revolution, such as Microsoft, Palantir, and AMD, have also witnessed a significant surge in their stock values throughout this year.

However, as AI technology continues to advance, concerns have been raised by technologists and AI practitioners regarding the need for regulation. The rapid development and deployment of AI systems call for careful consideration of ethical and legal frameworks to ensure responsible and beneficial implementation in various domains.