Nvidia starts the $5 trillion club

PLUS: OpenAI's new deal and Amazon's AI layoffs

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Good morning, AI enthusiast.

Nvidia has just crossed the $5 trillion valuation milestone, a first for any company. This historic achievement is fueled by soaring demand for its AI chips, with massive sales forecasts for the coming years.

The valuation isn't just a number; it's a reflection of Nvidia's position as the foundational engine of the AI economy. With the AI boom now fueling a massive physical construction wave, the question is how quickly the real world can build the infrastructure to keep pace with digital demand.

In today’s AI recap:

  • Nvidia’s historic $5 trillion valuation

  • OpenAI’s new for-profit structure

  • Amazon’s AI-driven corporate layoffs

  • 8 trending AI Tools

Nvidia's $5 Trillion Moment

The Recap: Nvidia made history by becoming the first company to hit a $5 trillion market cap, driven by insatiable demand for its AI chips and a new forecast of $500 billion in GPU sales through 2026.

Unpacked:

  • Nvidia added its latest trillion dollars in value in just three months, illustrating the feverish pace of the global AI boom.

  • The forecast is based on CEO Jensen Huang’s announcement of a $500 billion sales backlog for its newest Blackwell and upcoming Rubin chips through 2026.

  • The boom’s impact extends beyond tech, fueling a massive construction wave as companies like Caterpillar report soaring demand for equipment to build new AI data centers.

Bottom line: This milestone solidifies Nvidia's position as the foundational engine of the AI economy. The company's valuation is a direct reflection of its critical role in powering the next wave of technological and industrial progress.

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AI Tools of the Day

  1. 🤖 SuperAGI – Build, manage, and run autonomous AI agents to automate complex digital tasks on an open-source developer-first framework.

  2.  Magic Patterns – Instantly transform simple text descriptions into fully-editable, production-ready UI components and screens for rapid product prototyping.

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  6. 📊 Obviously AI – Build and deploy predictive machine learning models in minutes without writing any code, turning your raw data into actionable forecasts.

  7. 🎨 Toona – Breathe life into your static comic book panels and illustrations by using AI to generate fluid, captivating animations automatically.

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OpenAI's Next Chapter

The Recap: OpenAI has officially restructured into a for-profit public benefit corporation, finalizing a new partnership deal that redefines its relationship with its largest backer, Microsoft.

Unpacked:

  • Microsoft now holds a 27% stake in OpenAI's new for-profit arm, which is valued at approximately $135 billion.

  • The company is now a public benefit corporation controlled by the nonprofit OpenAI Foundation, which itself holds an equity stake worth about $130 billion.

  • A key change requires that any future declaration of achieving Artificial General Intelligence (AGI) must be verified by an independent expert panel, not just by OpenAI.

Bottom line: This new structure allows OpenAI to raise capital more easily as it pursues massive infrastructure projects and a potential IPO. The deal solidifies Microsoft’s central role in the AI ecosystem while creating a new governance model for scaling a mission-driven AI company.

AI Training

The Recap: We just posted our very first (of many!) AI automation training videos on YouTube. In this video, we walk through how to use n8n, firecrawl, and rss.app to scrape virtually any piece of web content and transform it into LLM-ready output.

P.S. We also launched a free AI Automation Community for those looking to build and sell AI Automations — Come join us!

AI Comes for Middle Management

The Recap: Amazon is cutting 14,000 corporate jobs as part of a major restructuring to operate more like a startup. The company explicitly cites the need to become leaner and more agile to capitalize on the transformative potential of AI.

Unpacked:

  • In a significant reversal of expectations, these cuts primarily target middle-management and corporate roles, not the warehouse jobs long thought to be most vulnerable to automation.

  • This aligns with a broader industry shift, with analysts at Gartner predicting that one in five organizations will use AI to eliminate at least half of their management layers by 2026.

  • The initial 14,000 layoffs may be just the first wave, as reports suggest the total number of corporate job cuts could reach as high as 30,000.

Bottom line: The long-held assumption that AI would primarily displace blue-collar jobs is being upstaged by a much faster restructuring of the corporate ladder. This shift signals that professionals must now focus on skills that complement AI-driven management and automation tools.

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The AI Industrial Revolution

The Recap: The AI boom is powering a massive industrial surge, with chipmaker Nvidia reaching a historic valuation and construction giant Caterpillar reporting record demand for the equipment needed to build AI data centers. This shows the digital revolution relies on both modern chips and old-school heavy machinery.

Unpacked:

  • Nvidia's valuation rocketed past $5 trillion, making it the first company to hit that mark after booking $500 billion in sales for its two newest chips.

  • This digital boom directly fuels physical construction, with Caterpillar reporting a 33% surge in its power-generation sales to supply engines for new data centers.

  • Despite the growth, Nvidia CEO Jensen Huang warns that a severe shortage of labor for skilled trades could become the primary bottleneck for building out AI infrastructure.

Bottom line: The AI boom is creating a tangible reindustrialization, linking the most advanced technology directly to foundational sectors like manufacturing and construction. This signals that massive opportunities exist not just in software, but also in building the physical world that AI requires.

The Shortlist

Nvidia partnered with Uber to power a future fleet of 100,000 self-driving robotaxis, with automaker Stellantis set to be among the first to deliver the vehicles.

OpenAI updated its content policy to allow "erotica for verified adults" on its platforms, signaling a significant shift that could impact the multi-billion-dollar adult entertainment industry.

OpenAI invested in biodefense startup Valthos through its Startup Fund, backing the company's mission to build an AI-powered tech stack to identify and neutralize biological threats.

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David, Lucas, Mitchell — The Recap editorial team