Nvidia just became too big to fail and Trump’s loving it
In case it wasn’t obvious by now, Tuesday provided the clearest example of how dominant Nvidia (NVDA) has become in the tech world, perhaps even cementing itself as the latest global company that has become too big to fail.
The chip giant, which was hosting its GTC event in Washington, D.C., released a combination of 19 press releases and blog posts on Tuesday announcing partnerships across the U.S. government, the automotive industry, the pharmaceutical industry, the telecommunications industry, the aerospace industry and the technology sector.
This includes deals with the U.S. Department of Energy (DOE), Uber Technologies (UBER), Palantir Technologies (PLTR), Oracle (ORCL), Eli Lilly & Co. (LLY), Lucid Group (LCID) and Nokia (NOK).
With a market cap of nearly $5 trillion, Nvidia is very far from needing government intervention to prop up its business like rival chipmaker Intel (INTC), but founder and CEO Jensen Huang nonetheless delivered a very pro-American keynote address that included lavish praise for President Trump and Energy Secretary Chris Wright.
"It's hard not to get sentimental and proud of America," Huang said at one point, while insisting that it was time “to start innovating with American technology."
The praise for Wright came because Nvidia is partnering with Oracle in building the largest AI supercomputer aimed at supporting the DOE’s efforts with scientific discovery.
The two companies will be developing a system called Solstice, featuring a record 100K Nvidia Blackwell GPU chips that will be used for helping the DOE develop AI capabilities that can be utilized for science, security and energy applications.
They will also be building another system called Equinox, featuring 10K Blackwell GPUs. This one will be available in the first half of 2026.
It’s unclear when Solstice will be available.
Huang does not fear an AI bubble
In addition to its work with the DOE, Nvidia will also be:
- Helping Uber accelerate production of its robotaxi fleet along with Lucid.
- Developing an integrated technology stack for operational AI with Palantir.
- Deploying an AI factory for Lilly to support drug discovery.
- And investing $1 billion in Nokia to develop an AI platform that will help the telecommunications industry evolve from 5G to 6G networks.
In an interview with Bloomberg after his presentation, Haung said that the vast number of partnerships Nvidia is forming helps refute any fears that the AI sector is nearing a bubble.
“I don’t believe we’re in an AI bubble,” he said. “All of these different AI models we’re using — we’re using plenty of services and paying happily to do it.”
Nvidia’s stock closed the day at $201.03, which The Kobeissi Letter noted was the first time it had gone above $200 a share. It also pointed out that Nvidia is now 3% off of becoming the first company to ever hit $5 trillion in market cap.
The stock had a somewhat modest gain of nearly 5% on Tuesday despite the slew of announcements, but Gene Munster, managing partner at Deepwater Asset Management, said in a post on X that it is “likely because there are enough moving parts to keep investors from taking his comments to the bank.”
Meanwhile, Huang decided to close out his remarks by echoing Trump’s most famous catch phrase.
"Thank you all for your service and making America great again," he said.