Just one day after surpassing Amazon, Nvidia eclipsed Alphabet in market capitalization on Wednesday. According to Bloomberg, the chip maker’s stock has surpassed the owner of Google’s $1.82 trillion market cap by a narrow margin. With this, Nvidia is now the fourth most valuable firm in the world following the AI surge, behind Saudi Aramco, Apple ($2.84T), and Microsoft ($3.04T). Presently, the business is producing the H100 chip, which drives most of the LLMs in use today, such as ChatGPT from OpenAI and most AI projects from Microsoft, Meta, and Amazon.
The biggest IT companies in the world are engaged in a race to develop AI chips, with the goal of breaking Nvidia’s near monopoly by producing their own GPU chips. Ironically, those same businesses account for the majority of Nvidia’s sales of AI chips, as noted by Bloomberg. The Santa Clara-based company is almost ready to release the H200, an improved AI chip with greater bandwidth and memory than its predecessor. Reuters revealed earlier this month that Nvidia has put $30 billion into a division that assists other businesses in creating their own bespoke AI chips. In other words, Nvidia may benefit even if businesses decide to develop their own AI chips.
the context of the meantime, the H200’s primary rivals, AMD and Intel, are developing their own potent CPUs.
