🔗 Share this article The Tech Giant Reaches World's First Milestone of Becoming a $5 Trillion Enterprise Nvidia has become the world's first $5 trillion company, just a quarter following this tech leader first broke through the $4tn valuation mark. By contrast, Nvidia’s worth exceeds the gross domestic product of India, Japan and the United Kingdom, according to the International Monetary Fund (IMF). Shortly after American exchanges opened on Wednesday, Nvidia’s shares reached $207.86 with 24.3bn shares outstanding, putting its market cap at $5.05 trillion. Strong demand for Nvidia’s processors, seen as the top-tier in powering AI products and software, is the main reason that the share value has surged dramatically from the start of last year. The wider US stock market has hit new peaks recently, supported by massive funding in artificial intelligence. Key Developments and Strategic Moves On Tuesday, Nvidia’s CEO, Jensen Huang, disclosed $500bn in processor contracts. The company also announced a collaboration with the ride-hailing service on robotaxis and a $1bn investment in the telecom firm, with the parties aiming to cooperate on 6G technology. In addition, Nvidia is joining forces with the US Department of Energy to build seven new advanced computing systems. Recently, Nvidia stated that it will commit $100 billion in OpenAI as within a partnership that will include at least 10GW of AI computing facilities to ramp up the computing power for the owner of the artificial intelligence chatbot ChatGPT. In August, Huang said Nvidia was discussing a potential new processor designed for China with the Trump administration. Donald Trump remarked on Air Force One that he would discuss with the Chinese president, Xi Jinping, about Nvidia’s technology on Thursday. Tech Surge and Market Impact Hitting the new benchmark highlights the upheaval caused by an AI frenzy that is widely viewed as the biggest tectonic shift in the tech sector after the tech pioneer Steve Jobs unveiled the first iPhone 18 years ago. Apple capitalized on the iPhone’s success to emerge as the initial listed firm to be worth $1tn, $2tn and eventually, $3tn. Potential Concerns However, worries exist of a potential tech bubble, with officials at the Bank of England earlier this month pointing out the growing risk that equity values driven by the artificial intelligence surge could burst. IMF’s managing director has raised a similar alarm.