🔗 Share this article The Tech Giant Achieves World's First Milestone of Turning into a $5tn Enterprise Nvidia now stands as the pioneering $5 trillion firm, only three months after the Silicon Valley chipmaker first broke through the $4 trillion valuation barrier. By contrast, Nvidia’s worth is greater than the GDP of Japan, India, and the UK, according to the International Monetary Fund (IMF). Shortly after US stock markets began trading on Wednesday, Nvidia’s shares touched $207.86 with 24.3bn available shares, placing its market cap at $5.05tn. Ravenous appetite for Nvidia’s processors, seen as the top-tier in powering AI software and tools, is the main reason that the company’s stock price has increased so rapidly since early 2023. The wider US stock market has hit new peaks recently, supported by massive funding in artificial intelligence. Major Announcements and Partnerships Earlier this week, Nvidia’s Chief Executive, Jensen Huang, disclosed $500bn in chip orders. The company also unveiled a partnership with the ride-hailing service on robotaxis and a $1bn funding in Nokia, with the two planning to cooperate on next-generation networks. Furthermore, Nvidia is teaming with the US Department of Energy to build multiple AI supercomputers. Last month, Nvidia announced that it will commit $100bn in OpenAI as part of a partnership that will add at least 10GW of Nvidia AI datacenters to boost the processing capacity for the owner of the artificial intelligence chatbot ChatGPT. This past summer, Huang said Nvidia was discussing a prospective computer chip designed for China with the Trump administration. Donald Trump remarked on Air Force One that he would speak with the China's leader, Xi Jinping, about Nvidia’s technology later this week. AI Boom and Market Impact Reaching this milestone puts more emphasis on the transformation caused by an AI frenzy that is considered the most significant change in the tech sector since the tech pioneer Steve Jobs introduced the first iPhone nearly two decades back. The tech giant capitalized on the smartphone’s popularity to become the first publicly traded company to be worth $1tn, $2tn and finally, $3tn. Risks and Warnings But there are concerns of a possible AI bubble, with UK central bank representatives earlier this month flagging the growing risk that equity values driven by the AI boom might collapse. IMF’s managing director has raised a similar alarm.