Chip maker Nvidia Corp. had an exceptional week, witnessing a staggering increase in its market value by $184 billion in a single day. This surge pushed the company closer to reaching a market capitalization of $1 trillion, driven primarily by surpassing Wall Street’s sales expectations, particularly due to the high demand for artificial intelligence (AI).
The positive outlook from Nvidia also had a ripple effect on other chip companies, the broader stock market, and possibly even the US dollar. Another notable player in the chip industry, Marvell Technology Inc., also experienced significant growth, with a 32% increase in stock value after projecting a doubling in sales fueled by AI. However, rival Intel Corp. did not fare as well.
AI Developments and Discussions
This week saw significant AI-related events, including a tour of Europe by prominent AI figures. UK Prime Minister Rishi Sunak invited tech executives, including Alphabet Chief Sundar Pichai, to discuss AI and the need for “guardrails.” Pichai also met with EU regulator Thierry Breton and committed to a “voluntary pact” governing AI usage in anticipation of more formal regulations. In a contrasting stance, Sam Altman, from OpenAI, stated in London that the company would withdraw from Europe if it couldn’t comply with AI regulations imposed by the EU. This sparked a response from Breton, accusing Altman of blackmail, although Altman later softened his position.
Coincidentally, Microsoft Corp., a major backer of OpenAI, was in Washington advocating for the establishment of a new US agency to regulate AI. When asked about Altman’s comments, Microsoft President Brad Smith expressed optimism that “reason will prevail.”
Meanwhile, the risks associated with AI became more apparent. A fake AI-generated photo depicting an explosion near the Pentagon went viral, briefly impacting US stock markets. The National Center for Missing and Exploited Children warned about child predators using generative AI to share fake child sexual abuse content while avoiding detection. An HR analytics firm highlighted that new AI tools could disproportionately affect women’s employment. Major venture capitalists scrutinized their portfolios for potential disruptions caused by AI, and UBS analysts cautioned that AI could be “highly disruptive” to markets by spreading misinformation and increasing the risk of intellectual property leaks.
Noteworthy AI Developments
Anthropic, an AI company, announced raising $450 million to enhance the development of an AI bot that is less susceptible to manipulation, aiming to prevent the creation of harmful content. TikTok is also testing its own AI chatbot named Tako. Additionally, our reporters uncovered news about an AI-backed marketing platform that completed a funding round, valuing the company at nearly $2 billion.
Nvidia CEO Jensen Huang, whose company has become a prominent player in AI, will be among the speakers at Computex in Taipei. Bloomberg will provide coverage of the event.