Tech

Nvidia: a record-breaking share buyback and a platform to prevent AI from causing harm

The American company has announced a $150 billion share buyback, the largest ever

Il CEO di Nvidia, Jensen Huang  REUTERS

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

The largest share buyback in history. Nvidia has announced it, having increased its share buyback authorisation by $150 billion. This is a huge sum, exceeding the $110 billion buyback announced by Apple in 2024. With this new tranche, the remaining buyback authorisation rises to $235 billion, which the company plans to utilise by the end of the 2028 financial year.

The transaction has been made possible by the cash generated from demand for chips used in the training and inference of artificial intelligence models. “Our ability to generate cash gives us the means to invest in the technologies that are driving this transformation and to return capital to shareholders,” said the chief executive and founder, Jensen Huang.

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The news of this record buyback clearly had an impact on the market, albeit not a particularly dramatic one. The share price immediately saw a positive surge.

In pre-market trading, with the share price up 0.8 per cent, it rose as much as 1.8 per cent following the news.

From the start of the year until Friday’s close, the shares had risen by more than 20 per cent. Meanwhile, last month the company had forecast revenue growth of around 70 per cent for the 2028 financial year. This figure is certainly reassuring for investors, who are now wondering how long the surge in spending on artificial intelligence might last after years of explosive growth.

Nevertheless, there remains one point about which some in the market harbour doubts. Nvidia has long been investing in AI start-ups and cloud service providers, and some investors wonder whether this funding ultimately serves to indirectly bolster demand for its own chips. This question is likely to remain unanswered.

Meanwhile, the Santa Clara-based company has, in the last few hours, made available a range of software tools designed to safeguard artificial intelligence agents – that is, systems capable of performing complex tasks autonomously. According to Nvidia, these tools would have prevented, for example, the attack suffered by Hugging Face, the leading platform for AI code development that Nvidia acquired for $13 billion just a few months after it had been overrun by out-of-control agents from OpenAI.

This news comes at a very delicate time for AI. Both OpenAI and Anthropic, the two leading US players in artificial intelligence, are investigating numerous cases in which their agents have infiltrated commercial and government systems. Contrary to the information circulating in recent weeks, there could be thousands of such cases. Huang, at the helm of the world’s largest company – whose chips have effectively fuelled and continue to drive much of the AI boom – has rejected calls for comprehensive security regulations. And he has found a valuable ally in Donald Trump. For the Taiwanese-born CEO, agents that have slipped out of control are simply an engineering problem to be solved, just as was the case with car safety. However, in the meantime, Nvidia is unveiling a platform to contain these errors.

The first tool is called OpenShell. It utilises hardware features of Nvidia’s central processing units to contain agents, and the company is working with Arm and Intel to ensure it also works on their processors. The second, Sentry, uses a separate Nvidia chip that works in conjunction with OpenShell: if an agent attempts to escape from its container on the central processor, it is isolated.

Justin Boitano, vice-president and general manager of enterprise computing at Nvidia, made explicit reference to the attack on Hugging Face that came to light this summer. “From what we understand, this new security platform could have prevented the breach if it had been used from the outset in frontier labs for model evaluation,” he said during a press briefing. “We are carrying out this work transparently and want everyone to collaborate with us.”

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