Nvidia Tops Trillion-Dollar Market Cap After Introducing AI Supercomputer

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by Tyler Durden
Tuesday, May 30, 2023 - 01:30 PM

Update (0930ET): The bell has rung and NVDA has now become the 9th company in history to reach a market capitalization of $1 trillion.

Having overtaken Tesla and Meta, Amazon is Nvidia's next target...

Just one thing before we all get too carried away - we have seen this kind of pattern before (when COVID supply chain shocks dragged forward years of orders as companies panic-bid for any and every chip they could find)...

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As Savannah Fortis detailed earlier, via, Nvidia continues to push forward in the race to develop artificial intelligence (AI) tools and applications as the company revealed plans to release more AI products. 

Speaking at the Computex show in Taiwan on May 28, Nvidia CEO Jensen Huang unveiled a new AI supercomputer platform called DGX GH200. The supercomputer’s primary purpose is to aid tech companies in developing successors to the popular AI chatbot ChatGPT, according to Huang.

Big Tech firms such as Microsoft, Meta and Google’s Alphabet are anticipated to be among some of the pioneering users of the supercomputer equipment.

Huang announced a new service called Nvidia ACE for Games, which targets the video game industry. ACE will utilize AI to help give background characters in games more character.

Additionally, the company plans to partner with marketing and communications giant WPP to combine AI and metaverse technologies to lower advertising costs. Nvidia is planning a new networking scheme that will accelerate the speed of information within data centers.

While Nvidia is leading the pack in terms of producing powerful chips to power AI applications, other companies are rushing to join in on the AI frenzy. 

Microsoft recently announced that it is developing its own chip with the capacity to power ChatGPT-like applications.

In China, developers are under sanctions from the United States, which has barred access to the latest version of Nvidia chips. However, local developers are currently trying combinations of chips and semiconductors to create their own methods of AI development.

As AI becomes more accessible and developers continue to push out new products, they are also in conversations with lawmakers around the world in order to ensure regulations that allow for innovation.

In early May, executives of many major tech companies gathered at the White House with U.S. Vice President Kamala Harris to discuss the dangers of AI. Officials also addressed companies, including Nvidia, about participation in publicly evaluating AI systems.