• Nvidia’s stock is currently worth $1.83 trillion, far more than the $1.82 market cap of the owner of Google.
  • Each company wants to develop its own GPU chips to topple Nvidia’s virtual monopoly.  Direct competitors such as Intel and AMD are also working on powerful chips that could rival the H20.

The world’s largest tech companies are engaged in an artificial intelligence chip arms race, each hoping to develop its own GPU chips in a bid to dethrone Nvidia’s virtual monopoly.Ironically, these are the companies that account for NVIDIA’s top sales of A.I. chips, as Bloomberg notes.

Considerable market value

On February 14th Nvidia’s market capitalisation overtook that of Alphabet, just a day after it overtook Amazon. According to Bloomberg, the chipmaker’s stock is now worth $1.83 trillion, far more than the $1.82 market cap of Google’s owner.This makes Nvidia the fourth most valuable company in the world after the AI boom, behind Microsoft ($3.04 trillion), Apple ($2.84 trillion), and Saudi Aramco. The company is currently making the H100 chip, which powers most LLMS in use today, including OpenAI’s ChatGPT and most AI projects at Microsoft, Meta, and Amazon.

Competition without the smoke

Nvidia, the Santa Clara-based company, is about to release a more advanced AI chip, the H200, that has more memory capacity and bandwidth than its predecessor. Earlier this month, Reuters reported that Nvidia had invested $30 billion in a unit dedicated to helping other companies make their own custom AI chips.That means that even if companies choose to develop their own A.I. chips, Nvidia could get a piece of the action.

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At the same time, direct competitors like Intel and AMD are also working on powerful chips that could compete with the H200.