🔗 Share this article The Tech Giant Hits World's First Landmark of Turning into a $5tn Company Nvidia has become the world's first $5tn firm, just three months following this tech leader first broke through the $4 trillion market value mark. In comparison, Nvidia’s value exceeds the gross domestic product of Japan, India, and the UK, according to the International Monetary Fund (IMF). Shortly after American exchanges began trading this Wednesday, Nvidia’s stock touched over $207 with 24.3bn available shares, putting its market cap at $5.05 trillion. Ravenous appetite for Nvidia’s chips, seen as the most cutting edge in driving AI products and software, is the primary driver that the company’s stock price has increased so rapidly since early 2023. The wider US stock market has reached multiple record highs this week, buoyed up by expansive investment in AI technology. Key Developments and Partnerships On Tuesday, Nvidia’s CEO, Jensen Huang, revealed $500 billion in processor contracts. The company also unveiled a collaboration with Uber on robotaxis and a $1bn funding in Nokia, with the two planning to cooperate on next-generation networks. In addition, Nvidia is joining forces with the American energy agency to construct seven new AI supercomputers. Last month, Nvidia stated that it will commit $100 billion in OpenAI as part of a joint effort that will add at least 10 gigawatts of Nvidia AI datacenters to ramp up the computing power for the developer of the artificial intelligence chatbot ChatGPT. This past summer, Huang said Nvidia was exploring a potential new processor tailored to the Chinese market with the Trump administration. Donald Trump remarked on Air Force One that he would discuss with the China's leader, Xi Jinping, about Nvidia’s chips on Thursday. AI Boom and Economic Significance Reaching this milestone highlights the upheaval caused by an AI frenzy that is widely viewed as the biggest tectonic shift in the tech sector since the tech pioneer Steve Jobs introduced the first iPhone 18 years ago. The tech giant rode the iPhone’s success to become the first publicly traded company to be worth $1tn, $2 trillion and eventually, $3 trillion. Potential Concerns However, worries exist of a potential tech bubble, with officials at the Bank of England earlier this month flagging the growing risk that equity values driven by the artificial intelligence surge might collapse. IMF’s managing director has raised a similar alarm.