Nvidia hit $5 trillion in market value today.

It's the first company in history to do that. In fact, it added about $300 billion in a day. What happened? Let dig a little.

Nvidia announced a $1 billion investment in Nokia to help build AI powered telecommunications infrastructure. The partnership aims to digitalise the global network backbone, embedding AI into 5G and 6G systems that connect the world.

Well that sound very geeky, but what on earth does that mean?

Well, the goal is straightforward. They want to turn the backbone of our telecom systems into software that can learn, optimise and scale. Nokia will bring radio access, switching and optical know-how. Nvidia will bring accelerated computing and model tooling.

Together they are pitching an AI native network where traffic, power use and maintenance are managed by algorithms in real time.

Here is the point. AI will run inside base stations, switches and optical kit. It will route traffic, cut power use, spot faults and plan upgrades. Nokia has the carrier footprint and radio expertise that Nvidia needs to do this. Nvidia will bring the accelerators and the software stack. If Nvidia supplies the data centres and the network gear, it gets paid in both places. Nvidia gets paid twice! So naturally, markets are excited.

The prize is simple. Lower latency, better utilisation and fewer truck rolls for operators. The risk is also simple: heavy spending might meet tight carrier budgets. So, the savings from this will need to be real and fast.

Will AI inside the network deliver hard savings for telecoms, or is this another bold promise that fails to pay back? Yikes. Let's see. What do you think?

I created this chart in 20 minutes thanks to PlotSet.com. It's lightly edited in CapCut and the music is from Epidemic Sounds. But, yes, I didn't write a line of code today, to make this. This is the company I'm cofounding – check it out.