Two AI-related firms are more valuable than Apple as the tech world has been turned upside-down.
Shares of Nvidia dropped $5.18 or 2.82% on Tuesday as it closed the regular trading session at $178.43. The stock gave back more than the half of the 4% it rose on Monday following the company’s announcement that it will invest as much as $100 billion in ChatGPT parent OpenAI. This partnership will allow OpenAI to build datacenters powered by 10 gigawatts of « compute capacity » from NVIDIA’s AI systems.Why GPUs are used in AI systems instead of CPUs
NVIDIA’s AI systems are built on the company’s GPU (Graphics Processing Unit) chips. We’ve explained it before, but it’s worth repeating. GPUs are used as AI accelerators because they excel in parallel processing. That means that with GPUs, multiple cores can be working on the same data at once. A CPU (Central Processing Unit) processes data sequentially. In other words, a CPU handles tasks one at a time.
The first phase to come online is expected to take place during the second half of 2026 and it will use the NVIDIA Vera Rubin platform. The latter is NVIDIA’s next generation of AI and data center platform and it will replace the Blackwell architecture. The Vera Rubin platform is named for one of the pioneers in astronomy and is built for large rack systems, not for a single chip. That gives the platform the ability to process large amounts of data at one time.
