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Microsoft and Nvidia have moved ahead of Apple with their AI investments

Microsoft and Nvidia have moved ahead of Apple with their AI investments
Microsoft and Nvidia have moved ahead of Apple with their AI investments
Key Points
  • Microsoft has been briefly overtaken by Nvidia as the worldโ€™s wealthiest company, ahead of Apple.
  • Both Microsoft and Nvidia made strategic investments in AI years ago.
  • Despite a fall in share price, Microsoft is still second only to Nvidia.
  • The tech industry was reshaped by the AI boom.

The ascent of Nvidia under CEO Jensen Huang has been a marvel of prescience. Recently, it became temporarily the worldโ€™s most valuable company โ€” a position it took from Microsoft, which had earlier eclipsed Apple. This brief reign atop the global technology industry prompted spontaneous applause at a tech gathering in Copenhagen.

For now, Nvidia has slipped back to No. 2 after its share price fell. Its combined value stands at $3tn, behind Microsoftโ€™s $3.4tn. What caused these tectonic shifts? Artificial intelligence (AI) and visionaries.

Early Investments in AI by Microsoft and Nvidia

Microsoft began its journey to the top with an investment in OpenAI โ€” creator of the widely used AI chatbot ChatGPT โ€” in 2019. This early move into artificial intelligence has paid off handsomely for the US company, establishing it as an AI-driven technology leader.

Nvidiaโ€™s CEO Jensen Huang similarly led his company into AI chip development long before generative applications surged in popularity. The Californian semiconductor makerโ€™s shares have since rocketed on rising demand for machine learning capabilities.

Tech Landscape Shifts as Boom Hits

London Tech Week this year could easily have been renamed London AI Week; such was the prominence of artificial intelligence at Europeโ€™s largest tech conference. The pervasive impact of AI was clear from every stand adorned with its name and each speech that mentioned it.

Anne Boden, founder of Starling Bank and one of fintech’s standout figures, summed up many attendeesโ€™ feelings when she said: โ€œWe thought we knew who the winners and losers were [in tech].

But with AI, we are throwing the dice again.โ€ This reflects how the boundaries of innovation and competition are being redrawn by AIโ€™s rapid spread across industries.

The buzz around AI was further evidenced at the Founders Forum. The invitation-only gathering of top entrepreneurs and investors carries a high level of confidentiality โ€” but there was no hiding its central theme: AI. Attendees spent much time discussing what it could do and its implications, underscoring their belief in its transformational power.

AI Stocks Reality Check

But the AI euphoria comes with some caveats. A headline in the Financial Times spelled out one of them: โ€œMost stocks hyped as winners from AI boom have fallen this yearโ€.

More than half of Citigroupโ€™s โ€œAI winners basketโ€ had lost value in 2024, according to the article. This serves as a reminder that while artificial intelligence holds great promise, markets can react unpredictably to it.

Microsoft and Nvidiaโ€™s strategic investments in AI have given them a temporary edge over Apple in the tech world. They saw the potential of artificial intelligence long before others did, which put them ahead of everyone else.

While nobody knows what will happen in the end because of these big risks taken by all major technology companies; one thing is clear โ€“ as long as there are still new developments being made around this area, it should be expected that there will always be changes taking place within such an industry.

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Abhijeet
Abhijeet is a Web3 and crypto writer who brings blockchain concepts to life with simple, engaging, and SEO-driven content. From DeFi and NFTs to emerging blockchain trends, he crafts stories that resonate with readers and build authority for Web3 brands.

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