A lucky bet and unlimited coffee: How Nvidia become the world's most valuable company

Core Viewpoint - Nvidia has become the most valuable public company in the world, surpassing Microsoft and Apple, with a market valuation exceeding $3.3 trillion, driven by its dominance in the AI and GPU markets [1][10]. Company History - Nvidia was founded in 1993 by Jensen Huang and two friends, initially focusing on creating computer chips for realistic 3D graphics in video games [2][4]. - The name "Nvidia" combines "NV" for "next version" and "Invidia," the Latin word for envy, reflecting the company's ambition to outpace competitors [2][3]. Product Development - Nvidia specialized in graphics processing units (GPUs), which became essential for rendering images in video games, distinguishing itself from competitors focused on central processing units (CPUs) [4][6]. - The company's early success included the GeForce graphics card and becoming the exclusive graphics provider for Microsoft's first Xbox [6][7]. Strategic Shifts - Nvidia recognized the potential of GPUs beyond gaming, marketing them for various tech applications and investing heavily in artificial intelligence (AI) in the 2010s [7][9]. - The company established itself in the automotive sector, providing driver-assistance software, with its hardware now present in all Tesla vehicles [7][10]. Market Position - Nvidia's early investments in AI positioned it as a leader in the market, controlling over 80% of the technology used in AI systems [10][11]. - The company's market valuation surged, reaching $2 trillion in February and surpassing Apple to become the most valuable company [10][11]. Recent Developments - Nvidia's stock price increased significantly, adding over $100 billion to its market value in a single day, driven by high demand for its products amid a supply shortage [11][12]. - Analysts noted that while Nvidia currently leads the market, competition is expected to intensify as companies like Microsoft invest heavily in AI [12].