🔗 Share this article The Tech Giant Hits World's First Landmark of Turning into a $5tn Enterprise Nvidia has become the pioneering $5 trillion company, only a quarter after this tech leader initially surpassed the $4 trillion valuation barrier. By contrast, Nvidia’s worth exceeds the gross domestic product of India, Japan and the United Kingdom, as reported by the International Monetary Fund (IMF). Soon after US stock markets began trading on Wednesday, Nvidia’s shares reached $207.86 with 24.3 billion shares outstanding, putting its market cap at $5.05 trillion. Strong demand for Nvidia’s chips, seen as the most cutting edge in powering artificial intelligence products and software, is the main reason that the share value has increased so rapidly since early 2023. The wider US stock market has reached new peaks this week, buoyed up by expansive investment in AI technology. Major Announcements and Strategic Moves Earlier this week, Nvidia’s Chief Executive, Jensen Huang, disclosed $500bn in chip orders. The company also unveiled a collaboration with Uber on autonomous taxis and a $1bn funding in the telecom firm, with the two planning to work together on next-generation networks. Furthermore, Nvidia is teaming with the US Department of Energy to build seven new AI supercomputers. Recently, Nvidia announced that it will invest $100 billion in OpenAI as part of a partnership that will include at least 10 gigawatts of Nvidia AI datacenters to ramp up the computing power for the developer of the AI assistant ChatGPT. This past summer, Huang mentioned Nvidia was discussing a prospective computer chip tailored to the Chinese market with the former U.S. government. Donald Trump remarked aboard his plane that he would discuss with the China's leader, Xi Jinping, about Nvidia’s technology later this week. AI Boom and Market Impact Hitting the new benchmark puts more emphasis on the upheaval being unleashed by an artificial intelligence craze that is considered the biggest tectonic shift in technology after the Apple co-founder Steve Jobs unveiled the original smartphone 18 years ago. The tech giant rode the smartphone’s popularity to emerge as the initial listed firm to be valued at $1 trillion, $2 trillion and finally, $3 trillion. Risks and Warnings However, worries exist of a possible AI bubble, with UK central bank representatives recently flagging the growing risk that equity values pumped up by the AI boom might collapse. IMF’s managing director has raised a similar alarm.