How NVIDIA just defeated every other tech company

Summary

In 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

00:00

🚀 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.

05:01

🤖 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.

Keywords

💡Nvidia

Nvidia is a leading technology company specializing in the design and manufacturing of graphics processing units (GPUs). In the video, it is highlighted as becoming the most valuable company in the world, surpassing giants like Microsoft and Apple, largely due to its pivotal role in the AI and GPU market. The script mentions Nvidia's innovative history, starting from its founding in 1993 and its significant contributions to the field of graphics and AI.

💡Graphics Processing Unit (GPU)

A GPU is a specialized electronic circuit designed to rapidly manipulate and alter memory to accelerate the creation of images in a frame buffer intended for output to a display. The video script explains how Nvidia's GPUs revolutionized gaming by offloading graphics rendering tasks from the CPU, allowing for more efficient parallel processing, and have since become essential in various fields including AI, video editing, and financial modeling.

💡Artificial Intelligence (AI)

AI refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions. The video emphasizes Nvidia's bet on AI, particularly through its CUDA platform, which has positioned the company as a key player in the development and training of AI models. Examples from the script include AI's application in disease research, self-driving cars, and digital services.

💡CUDA

CUDA, or Compute Unified Device Architecture, is a parallel computing platform and application programming interface (API) model created by Nvidia. It allows developers to use Nvidia GPUs for general purpose processing, beyond graphics. The script describes CUDA as a game-changer that made Nvidia GPUs the go-to choice for AI development and other computationally intensive tasks.

💡Stock Split

A stock split is a corporate action in which a company increases the number of its outstanding shares by issuing more shares to current shareholders. In the video, Nvidia's 10:1 stock split is mentioned as a move that made its shares more affordable and accessible to new investors, potentially contributing to its market value surge.

💡Market Correction

A market correction refers to a decline of at least 10% in the value of a stock, bond, or commodity from its recent peak. The script notes that Nvidia experienced a market correction, falling to the third most valuable company, which indicates the volatility and speculative nature of the tech market.

💡Jensen Huang

Jensen Huang is the co-founder and CEO of Nvidia. The video script shares his journey from working as a waiter's assistant to becoming a key figure in the technology industry. His vision and leadership have been instrumental in Nvidia's rise to prominence in the GPU and AI sectors.

💡Digital Twins

Digital twins are virtual models of physical objects or systems that are used to analyze and predict the behavior of their real-world counterparts. The video mentions how surgeons are using digital twins of patients to practice surgeries, illustrating the integration of AI and technology in medical procedures.

💡Metaverse

The metaverse is a collective virtual shared space, created by the convergence of virtually enhanced physical reality and physically persistent virtual reality. The script suggests that the metaverse, whenever it becomes a reality, will be powered by Nvidia GPUs, highlighting the company's potential role in future digital landscapes.

💡Green With Envy

This phrase is used in the script to describe Nvidia's marketing slogan for their GeForce 8 series graphics cards. It reflects the company's competitive edge and the desirability of their products, playing on the word 'Envy' from their brand name.

💡Invidia

Invidia is the Latin word for 'envy' and is also the name of an ancient Roman goddess representing envy. The video script explains that the name Nvidia was derived from this term, signifying the company's intention to create products that others would envy, and it is linked to their green-eyed logo and branding.

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

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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

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