Majority Of Wealth Accumulated By World's Rich Traced Back To AI
The wealth of Nvidia Corp. co-founder Jensen Huang has experienced a significant surge, fuelled by a surge in AI-related stocks that pushed the chipmaker's market value above that of Amazon.com Inc. for the first time.
This uptick in AI-related stocks has also contributed to the emergence of another billionaire within Huang's family circle: his distant cousin Lisa Su, the chief executive officer of Nvidia's competitor Advanced Micro Devices Inc.
Su's net worth has soared to $1.2 billion as the company's stock doubled over the past year.The rise of two billionaire chipmakers within the same family highlights the widespread impact of artificial intelligence, which has dominated the stock market and significantly boosted the wealth of the world's richest individuals this year.
Among the wealthiest, 30 owe part of their fortune to AI
Among the 500 wealthiest individuals globally, 30 owe part of their fortune to companies tracked by the Bloomberg Global Artificial Intelligence Index. These holdings have collectively augmented their net worth by $124 billion so far this year, constituting 96% of the total wealth gained on the Bloomberg Billionaires Index.
Prominent beneficiaries of this trend include Huang and Mark Zuckerberg, with Meta Platforms Inc. ranking as the second-best performer on the S&P 500 Index after Nvidia for the second consecutive year. Steve Ballmer has also experienced substantial gains following Microsoft Corp.'s partnership with OpenAI, while Michael Dell has seen his fortune surge, partly due to AI initiatives at Dell Technologies Inc. and Broadcom Inc.
The billionaire club & their AI money
Lisa Su is not the sole newcomer to the billionaire club resulting from this surge. Charles Liang, co-founder of Super Micro Computer Inc., has witnessed his fortune triple to $6.2 billion this year, as his company's stock outpaced other AI-related shares.
Palantir Technologies Inc. co-founder Alex Karp's net worth has reached $2.8 billion following a 31% surge in the company's shares in response to robust quarterly earnings.
Additionally, other billionaires have indirectly benefited from the AI boom. SoftBank Group Corp. founder Masayoshi Son's net worth has risen by $3.7 billion this year, propelled by chipmaker Arm Holdings Inc.'s near doubling in value over three trading sessions, driven by strong earnings indicating increased AI spending.
Notably, ARM is 90% owned by SoftBank.However, the magnitude of these gains has raised concerns about the sustainability of the rally. Bank of America Corp. strategist Michael Hartnett cautioned earlier this month that the rush into tech stocks bears resemblance to the dot-com bubble.
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