Nvidia $5 Trillion Valuation: The Physical AI Era at CES 2026

Is Nvidia still a gaming company? The answer from CES 2026 is a resounding no. Nvidia has officially become the first company in history to hit a $5 trillion valuation, shifting its entire weight toward a future where every physical object is powered by artificial intelligence.

Nvidia $5 Trillion Valuation Driven by Physical AI

CEO Jensen Huang introduced the concept of Physical AI—AI systems that don't just generate chat responses but interact with the tangible world. These models are trained in virtual simulations before being deployed into robots and vehicles. According to Bloomberg, this move marks Nvidia's transition from a component supplier to a primary player in industrial automation.

• Cosmos: A world foundation model designed to predict movement and simulate entire environments.
• Alpamayo: A specialized reasoning model built for autonomous driving, featured in the Mercedes-Benz CLA.
• Robotaxi Ambitions: Plans to launch a Level 4 autonomous taxi service with partners as early as 2027.

The Rubin Era: Moving Beyond the GPU

Notably absent from the keynote was any mention of new GeForce graphics cards. Instead, Nvidia placed all its bets on Rubin, its next-generation AI platform. Rubin isn't just a chip; it's a full-stack system integrating CPUs, GPUs, and networking designed to handle the astronomical compute demands of hyperscalers and governments.

Nvidia's strategy is clear: sell the pipes of the AI ecosystem. By releasing open models for healthcare, climate science, and robotics, they are ensuring that every developer, from local startups using DGX Spark to massive data centers, remains tethered to Nvidia's hardware and software stack.