OpenAI CEO Sam Altman (L) shakes hands with Microsoft Chief Technology Officer and Executive VP of Artificial Intelligence Kevin Scott during the Microsoft Build conference at the Seattle Convention Center Summit Building in Seattle, Washington, U.S., on May 21, 2024.
Investors can't get enough of artificial intelligence, despite worries over the sector's excessively high valuations.
The S&P 500 , Dow Jones Industrial Average and Nasdaq Composite rose Tuesday stateside, with all three notching new intraday highs. The major averages were juiced by gains in tech. Nvidia popped nearly 5%, while Microsoft climbed roughly 2%.
Both Apple and Microsoft reached a market capitalization of over $4 trillion after their shares rose. It was the first time Apple hit that milestone, though it closed just shy of that level.
Tech companies can't get enough of each other, either.
Nvidia announced a $1 trillion investment in Nokia, which the Finnish company said will go toward developing its AI plans. For those, like me, who remember Nokia as a company that made the most desirable and bullet-proof phones: It primarily produces cellular equipment now.
Meanwhile, with its 27% stake in OpenAI's for-profit business, Microsoft is potentially sitting on a goldmine — provided AI finds its footing as a sustainable, revenue-generating business in the long run. OpenAI on Tuesday announced it had completed its restructuring as a nonprofit with a controlling stake in its for-profit arm.
It's not just Microsoft. Investors who have poured money into tech could potentially gain big — as Cathie Wood of Ark Invest says, "If our expectations for AI … are correct, we are at the very beginning of a technology revolution."