On May 30, computer chip manufacturer Nvidia hit a historic milestone of achieving a $1 trillion market capitalization as the demand for artificial intelligence (AI) technology continues to skyrocket. Afterwards, its shares rose 27.6% in extended trading the same day.

Nvidia’s Market Cap Nears $1 Trillion on Strong Q2 Performance and Increased AI Chip Shipments

As of now, the market cap of Nvidia stands at $992 million. Nvidia’s impressive market value surge is attributed to its strong Q2 performance, with a 19% quarter-on-quarter revenue increase. As a result, they managed to ship more AI-ready chips, which are essential for the training of AI services.

The “Trillion Dollar Club” includes Apple, Microsoft, Amazon, and Alphabet (Google’s parent company) alongside Tesla. Microsoft is developing an AI chip to power its internal projects and support OpenAI, co-founded by Sam Altman. Tesla’s CEO Elon Musk also purchased thousands of general processing units (GPUs) in April for an upcoming Twitter AI project.

Chinese Developers Seek Workarounds and Alternative Semiconductor Options

The growing demand for AI technology has led to market strain and challenges in acquiring AI-ready chips. In China, sanctions have been imposed, prohibiting the availability of the latest version of Nvidia chips. Chinese developers have managed to keep up with American tech by using workarounds and working with alternative semiconductor options.

As AI applications become more widespread, companies globally will need to address the ethical implications and impact on daily life. To have a clear understanding of the potential consequences that come with wielding such powerful tools, it is important to remain mindful rather than getting swept up in the buzz of the latest tech.

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The post Nvidia Hits $1 Trillion Market Value Milestone; Chinese Developers Seek AI Sanctions Workarounds to Compete with US Tech Giants appeared first on Boxmining.

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Filed under: Bitcoin - @ May 31, 2023 4:50 am