How NVIDIA just defeated every other tech company
Summary
TLDRIn June 2024, Nvidia became the world's most valuable company, worth $3.34 trillion, surpassing tech giants like Microsoft and Apple. Founded in 1993 by Jensen Huang, a former waiter turned microprocessor designer, Nvidia revolutionized gaming with its GeForce 256 GPU in 1999. Its bet on AI in 2006 with the CUDA platform made it the go-to for AI development, powering everything from self-driving cars to cloud computing. Nvidia's 10:1 stock split in June made it more accessible to investors, reflecting its pivotal role in the digital future.
Takeaways
- 🌟 On June 18, 2024, Nvidia became the world's most valuable company, surpassing giants like Microsoft, Apple, Samsung, and Alphabet, with a valuation of $3.34 trillion.
- 🎮 Nvidia's success is not just due to their high-end PC graphics cards but also their strategic moves in the tech industry.
- 💡 Nvidia was founded in 1993 by Jensen Huang, who started with humble beginnings and a passion for computer science, eventually leading to the creation of a revolutionary company.
- 🛠️ The company's name, Nvidia, is derived from the Latin word 'Invidia', symbolizing envy, reflecting their ambition to create products that others would envy.
- 🚀 Nvidia revolutionized gaming with the release of the GeForce 256 in 1999, the first GPU designed for parallel processing to handle graphics rendering, offloading tasks from the CPU.
- 🏆 Nvidia's dominance in the GPU market has been so significant that they have outperformed their traditional rival AMD, with revenues in the first quarter of the year being $26 billion compared to AMD's $5.5 billion.
- 🧠 Nvidia's significant bet on AI came in 2006 with the release of CUDA, a software platform that allowed developers to harness the full power of Nvidia GPUs for a wide range of non-graphics tasks.
- 🌐 CUDA's efficiency and the widespread adoption by developers made Nvidia GPUs the go-to choice for AI development, embedding the company into the fabric of artificial intelligence.
- 🔧 Nvidia's technology is integral to various industries, from medical research to self-driving cars, and even powers a significant portion of cloud-based internet services like Amazon Web Services.
- 📈 Nvidia's stock underwent a 10:1 stock split in June 2024, making shares more affordable and accessible to new investors, which likely contributed to their market value surge.
- 🔍 Despite a market correction that saw Nvidia drop to the third most valuable company, their integral role in the digital transformation and AI industry suggests a resilient position in the tech landscape.
Q & A
On what date did Nvidia become the most valuable company in the world?
-Nvidia became the most valuable company in the world on the 18th of June 2024.
What was Nvidia's market value when it became the most valuable company?
-Nvidia's market value was $3.34 trillion when it became the most valuable company.
Which companies did Nvidia overtake to become the most valuable?
-Nvidia overtook Microsoft, Apple, Samsung, and Alphabet to become the most valuable company.
How many times could Nvidia's market value buy the highest grossing media franchise in the world?
-Nvidia's market value could buy the highest grossing media franchise in the world 36 times.
What is the significance of the name 'Nvidia'?
-The name 'Nvidia' comes from the Latin word 'Invidia', which is the name of an ancient Roman goddess representing envy. It also implies 'next version envy', suggesting that people will be envious of their next chip.
What was the key innovation that Nvidia introduced with the GeForce 256 in 1999?
-The GeForce 256 was the first chip marketed as a Graphics Processing Unit (GPU), designed to handle graphics rendering load alongside the CPU, using efficient parallel processing.
What is CUDA and why was it significant for Nvidia's growth?
-CUDA (Compute Unified Device Architecture) is a software platform released by Nvidia in 2006 that allowed developers to utilize the full power of Nvidia GPUs for non-graphics tasks, making their GPUs the tool for various applications beyond gaming.
How did Nvidia's involvement with AI contribute to its success?
-Nvidia's forward-thinking approach in working with other tech companies on AI for two decades made them embedded into the fabric of artificial intelligence, becoming the go-to for companies wanting to build and train powerful AI models.
What is a 10:1 stock split and how did it affect Nvidia's accessibility to new investors?
-A 10:1 stock split means each existing share of a stock is divided into 10 new shares, making each share worth a tenth of its original value. This made Nvidia shares more affordable and accessible to new investors.
How has Nvidia's technology been integrated into various industries?
-Nvidia's technology has been integrated into various industries such as movie production using game engine graphics, medical training using digital twins, and powering the infrastructure for cloud-based internet services like Amazon Web Services.
What is the potential environmental impact of the growth in AI and Nvidia's role in it?
-The growth in AI, powered by Nvidia GPUs, could potentially consume a significant amount of power. A study suggests that at the current rate of growth, AI needs alone could consume the power equivalent to an entire country the size of the Netherlands.
Outlines
🚀 Nvidia's Rise to World's Most Valuable Company
On June 18, 2024, Nvidia surpassed major tech giants like Microsoft, Apple, Samsung, and Alphabet to become the world's most valuable company with a market value of $3.34 trillion. This achievement is particularly remarkable given Nvidia's relatively recent inception in 1993. The company's founder and current CEO, Jensen Huang, started with humble beginnings, working as a waiter at a local Denny's before transitioning to a career in microprocessor design at AMD. Nvidia's pivotal moment came in 1999 with the release of the GeForce 256, the first GPU, which revolutionized gaming by offloading graphics rendering tasks from the CPU. This innovation quickly made Nvidia a household name. The company's success didn't stop there; they continued to dominate the GPU market, outselling their rivals like AMD. Nvidia's strategic bet on AI in 2006 with the release of CUDA, a software platform that enabled developers to harness the full power of Nvidia GPUs for non-graphics tasks, further solidified their position. This move made Nvidia GPUs the go-to choice for AI development, video editing, financial modeling, and cryptocurrency mining.
🤖 Nvidia's Integral Role in AI and Digital Transformation
Nvidia's pioneering role in unlocking the computational power of GPUs for developers through their CUDA software has made it the default choice in the AI industry. The efficiency of CUDA, tailored specifically for Nvidia's graphics chips, has been instrumental in embedding Nvidia into the fabric of artificial intelligence. This has been evident in various applications, from Tesla's self-driving car algorithms to complex simulations for disease research. Nvidia's technology also powers Amazon Web Services, a major web services provider, indicating its widespread use in the digital infrastructure. The company's decision to perform a 10:1 stock split in June 2024 made their shares more accessible to new investors, boosting their market value. Despite some market corrections and questions about the sustainability of AI's growth, Nvidia's technology remains at the forefront of digital transformation, from movie production using game engine graphics to surgical training with digital twins. Nvidia's GPUs are the driving force behind these advancements, solidifying their position as a key player in the digital age.
Mindmap
Keywords
💡Nvidia
💡Graphics Processing Unit (GPU)
💡Artificial Intelligence (AI)
💡CUDA
💡Stock Split
💡Market Correction
💡Jensen Huang
💡Digital Twins
💡Metaverse
💡Green With Envy
💡Invidia
Highlights
Nvidia became the most valuable company in the world on June 18th, 2024, with a market cap of $3.34 trillion.
Nvidia's value could buy the highest-grossing media franchise, Pokémon, 36 times over.
Nvidia's success is not just due to high-end PC graphics cards but also their strategic moves in the tech industry.
Nvidia was founded in 1993 by Jensen Huang, who started as a waiter's assistant and later worked at AMD.
The name 'Nvidia' comes from the Latin word 'Invidia', symbolizing envy, reflecting the company's goal to create products that others would envy.
Nvidia revolutionized gaming with the release of the GeForce 256, the first GPU designed for parallel processing in graphics rendering.
Nvidia's GPUs have been consistently outselling their rivals, with a significant lead over AMD.
Nvidia's growth was significantly boosted by their bet on AI and the release of CUDA in 2006.
CUDA allowed developers to harness the full power of Nvidia GPUs for non-graphics tasks, making them a standard tool in various industries.
Nvidia's GPUs became the go-to choice for building and training AI models due to their efficiency and CUDA's widespread adoption.
Tesla is using Nvidia GPUs to improve their self-driving technology in a supercomputer cluster at their Texas gigafactory.
Nvidia's technology powers Amazon Web Services, which provides infrastructure for a significant portion of the cloud-based internet.
Nvidia's stock underwent a 10:1 split in June 2024, making shares more affordable and accessible for new investors.
Despite market corrections, Nvidia remains a key player in the AI industry and the digital transformation of various sectors.
Nvidia's GPUs are integral to the development of AI, from medical research to self-driving cars and digital entertainment.
The Opera browser's Arya AI and Tab Islands feature enhances user experience with AI integration and tab organization.
Tab Emojis in Opera browser allow for better tab differentiation and organization, improving the browsing experience.
Transcripts
on the 18th of June 2024 Nvidia became
the most valuable company in the world
at $ 3.34 trillion they overtook
Microsoft Apple Samsung alphabet it's
hard to stress just how big of a deal
this is I mean Pokémon you know the
highest grossing media franchise in the
world this could buy that company 36
times and we know Nvidia you might even
be watching this video using one of
their graphics cards in your PC but
we're talking a company that overtook
Apple you know the guys who managed to
sell luxury smartphones to like a third
of the world population you don't beat
that just with some high-end PC graphics
cards so what on Earth have a media done
to a get themselves to a position where
they could even dream of overtaking all
the other big tech companies and B
actually overtake them and one thing
that I need to make super clear which
makes this all the more surprising is
that Nvidia only started in 1993 which
is recent enough that the guy who is now
CEO Jensen hang he was the same guy who
founded the company along with two other
guys Jensen used to work as a waiter's
assistant in a local Denny's Dino when
he was younger he fell in love with
computer science and So eventually went
from there to getting his dream job
working with AMD one of the leaders at
the time as a microprocessor designer
until one day when he decided I got an
idea Jensen basically realized the key
thing that was holding PCS back from
unparalleled performance which I'm
getting to so he booked a table all the
way back where it began at a Denny's
diner with these two other guys and that
is famously where they hatched the plan
to form Nvidia there's literally a
plaque on the wall where that meeting
happened but in video didn't have its
name at this point do you know where
that came from well most of the guy's
files documenting their plans about this
future company had been pretty
uncreative named next version so when
they decided that we're actually doing
this they looked up words that included
Envy in that order and they found the
Latin word Invidia which is the name of
an ancient Roman goddess Invidia was the
personification of Envy a pretty
unpleasant lady with a poison tongue and
green eyes thus the name Nvidia was born
so the brand name basically means next
version Envy kind of saying you're going
to be so jealous of our next chip and
now that you know where the Greene Eye
logo comes from you too will no longer
be able to see it without also seeing
this haunting image alongside it so
you're welcome and now that you know you
will see this origin all across their
branding too like the slogan for the
GeForce 8 series graphics cards was
Green With Envy and the company's
highest n gpus for a long time they were
called Titans and this Nvidia was
believed by some ancient Greeks to be
the daughter of a Titan so it all LS
together but what actually made Nvidia
different what was this big idea that
they were getting together for well in
1999 Nvidia released the GeForce 256 the
first chip ever to be marketed as a
graphics Processing Unit or GPU a piece
of Hardware that could sit alongside
your CPU which at this time could only
process one calculation at a time and
take on the graphics rendering load
while you're gaming using far more
efficient parallel processing it was
designed to divide big tasks that would
previously be done very slowly into
smaller parts and then distribute those
parts amongst many many small process of
CES which in turn freed up people's
actual CPUs to focus on things like
in-game physics the concept of the GPU
quickly caught on in both PC and console
gaming which pretty much revolutionized
gaming and very quickly turned Nvidia
into a household name and Nvidia has
absolutely killed it with gpus ever
since then um fun fact actually this is
the graphics card I installed on the
first ever PC I built every couple of
years they come on stage they've
announced a new generation of graphics
cards and they've been so successful at
making each one a leap above the last
that they're now out selling their
traditional rival AMD you know the
company who Jensen originally got his
dream job working at to a ridiculous
extent with nvidia's first quarter
Revenue this year at $26 billion
compared to amd's well measly 5.5
billion but they didn't get as big as
they are today just by coasting on GPU
sales here's the rocket fuel that made
their growth just explode Nvidia made a
huge bet on AI in 2006 Nvidia released
Cuda compute unified device architecture
which they could have done a better job
naming for something that's actually a
bit of a game changer it was a software
platform that allowed the developers of
apps to properly utilize the full power
of Nvidia gpus even for non-g graphics
tasks developers could take tasks that
would usually be performed one by one on
the CPU course and instead just like
they've been able to do with games on
Nvidia gpus split those tasks up and
perform parallel processing using the
thousands of GPU calls they now had
access to this was a big moment for apps
it made nvidia's graphics cards the tool
for much more than just gaming they
became the gold standard for video
editors for financial modelers
cryptocurrency miners anyone who wanted
to do anything with a computer and most
importantly for any company wanting to
build and train a big powerful AI model
how do you do that not on CPUs which are
doing things one step at a time but
instead by harnessing the full power of
a GPU and which GP are you most likely
going to pick Nvidia Nvidia being the
first company to unlock the full
computational power of the GPU for the
average developer meant that their Cuda
software became the default option
developers got comfy with it it improved
very quickly and because this Cuda
programming environment was built
specifically around nvidia's Graphics
chips it was super efficient it's very
similar to how efficient iPhones are
because every thread of that iOS
software is designed around every
fragment of the iPhone hardware and with
this by being very forward Thinking by
working with other tech companies on AI
for literally the last two decades
Nvidia became embedded into the very
fabric of artificial intelligence
whether it's researchers wanting to run
complex simulations to figure out what
proteins could potentially cure major
diseases or Tesla wanting to train
algorithms for their self-driving cars
Nvidia became the crutch to lenon
literally right now Tesla is nearing
completion on a supercomputer cluster at
their Texas gigafactory which is
supposed to improve Tesla's full
self-driving using $50,000 Nvidia gpus
and a sub to the channel would be GP
youtiful that also could have been
better and so when AI development
exploded over the last couple of years
with every single person and their dog
now having access to tools like chat gbt
Gemini and more what's running all of
that when we ask for an image of a
robotic Flamingo doing rolly poy on the
moon what's processing that AI request
yes Nvidia but another crazy bit of
context nvidia's Tech is also what
powers Amazon web services which is the
world's most broadly adopted web
services provider they're the company
who builds the infrastructure for
basically 30% of the cloud-based
internet so the chances are pretty high
that anytime you visit a website there
is NVIDIA Tech somewhere along the
pipeline that's bringing it to you so
that explains the first part of this
puzzle how Nvidia became the sole arms
dealer of the chips required for the now
massive AI industry arms race but how
did they go one step further to actually
overtake every single other tech company
in June well they decided to do a 10:1
stock split and to find out what that is
I can just ask the Arya AI baked into
the Opera browser explain to me a 10:1
stock split in two sentences with an
example right so a 10 to1 stock split
means that each existing share of a
stock is divided into 10 new shares and
then it gives an example to say that if
you owned 100 shares of a company and
they did a 10 to1 stock split you would
now have a th000 shares in your
possession but the total value of your
investment is the same because it's just
that now each individual share is worth
a tenth of what it used to be why does
that matter well it means that for new
investors Nvidia shares have just gotten
10 times more affordable so it makes
investing in this company much more
accessible at a time where the entire
world is looking for some way to invest
in AI it became a no-brainer it was
explosive as for now and the future
while Nvidia has been hit with a pretty
severe Market correction so they backed
down into third most valuable company
and while there are some question marks
around AI like is it being over valued
in the same way that the dotom bubble
was and can the world sustain it cuz you
know there was a recent study that
showed that at the current rate of
growth our AI needs alone will consume
the amount of power of an entire country
the size of the Netherlands but even
then now that the AI cat is out the bag
it doesn't look like AI is going
anywhere and even if it does there's no
changing that the world is going digital
movies are now being made using game
engine Graphics surgeons are now honing
their craft using digital twins of
patients before operating on the real
thing the metav if that ever comes to
fruition it's all being powered by
Nvidia gpus so that's how Nvidia got to
the crazy position that they're
currently in and by the way Arya isn't
even the most fun thing about the Opera
browser anymore so you've seen how tab
Islands can help you group together all
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aside from a delightful Touch of
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this one that every time I have two
similar tabs open this allows me to
differentiate them instead of
persistently gaslighting myself into
opening the wrong one every time but
also when you're browsing you tend to
have one or two key tabs like for me
it's the document I'm compiling all of
my research into and tab emojis mean
that even if you've got like 40 things
open at once I always know to return to
my cooking Emoji so give it a go using
my link in the description
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