Economy

Chip battle
Nvidia first to reach market capitalization above $5 trillion

Chip giant Nvidia is up over 5 percent on Wall Street, after the company's CEO Jensen Huang delivered a string of news at the company's AI conference GTC yesterday.

This means the company's market capitalization exceeds $5 trillion for the first time. Nvidia is making history - no company has ever traded at such a valuation.

- A valuation of $5 trillion would have been unthinkable just a few years ago, especially to get there so quickly, says Truist Advisory CEO Keith Lerner, adding that investors have great faith in AI being disruptive and can fundamentally change business models.

As recently as four months ago, Nvidia passed the latest milestone of $4,000.

Open AI's future
Sources: Altman's promise could pave the way for a 2027 IPO

Open AI CEO Sam Altman's promise to regulators that the AI ​​giant will stay and expand in California was crucial in getting the green light for the company's restructuring to a more traditional corporate form, writes WSJ.

The approval of the new corporate structure also paves the way for a potential IPO of the AI ​​giant as early as 2027, sources told the newspaper.

However, the discussions are reportedly still in the early stages and the listing could ultimately be postponed or not happen at all.

Sam Altman said on Tuesday that an IPO is likely, but that the company has no specific plans for the timing.

The new corporate structure that was presented yesterday means that the OpenAI Foundation, the original parent company, retains control of Open AI and can appoint board members.

European security policy
Sources: Spotify founder's defense company could deliver drones to Germany

The German state is about to award Daniel Ek's defense startup Helsing a large contract for so-called kamikaze drones, sources tell the FT.

The drones will be ordered from three suppliers: Helsing, the German defense startup Stark, with Peter Thiel as an investor, and the defense group Rheinmetall. In total, the deal is expected to be worth up to 900 million euros, equivalent to almost 10 billion kronor.

Each company is expected to be awarded contracts worth around 300 million per company, i.e. a little over 3 billion kronor each. The sources emphasize that no contracts have yet been signed.

The contract covers up to 12,000 drones and aims to strengthen NATO's eastern flank against Russia, the newspaper writes.