AI boom is just beginning – Nvidia CEO Jensen Huang explains what’s driving the virtuous cycle – Crypto News – Crypto News
Connect with us
AI boom is just beginning - Nvidia CEO Jensen Huang explains what’s driving the virtuous cycle AI boom is just beginning - Nvidia CEO Jensen Huang explains what’s driving the virtuous cycle

Metaverse

AI boom is just beginning – Nvidia CEO Jensen Huang explains what’s driving the virtuous cycle – Crypto News

Published

4 months ago

on

Nvidia CEO Jensen Huang said on Friday that artificial intelligence had reached a “virtuous cycle,” signaling a tipping point for continuous, rapid growth in the industry, which will fuel the AI boom.

Speaking at the Asia-Pacific Economic Cooperation CEO Summit in South Korea, Huang said as AI models continue to improve, they are attracting more investment — which, in turn drives further advancements in the technology. Describing this loop, he said, “We have now achieved what is called the virtual cycle.”

His comments during the APEC event come as major tech companies are spending billions to build out AI-related infrastructure and serve its end users.

“The AIs get better. More people use it. More people use it, it makes more profit, creates more factories, which allows us to create even better AIs, which allows more people to use it. The virtual cycle of AI has been designed, and this is … the reason why you’re seeing the world’s capex going so fast,” Huang was quoted as saying by CNBC.

Companies bet big on AI spending

Huang stressed that profitability is central to the current boom in AI capital investment. Just as profitable chip manufacturing spurs the building more factories, the financial success derived from improved AI drives more investment.

Also Read | Tech giants pour $380 bn into AI — but not everyone is winning from the spend

This investment is already huge, with tech giants like Meta, Amazon, Alphabet and Microsoft collectively planning to invest more than $300 billion combined this year on AI technologies and data center build-outs. This looks set to continue into 2026 as the tech giants plan to boost capital expenditures again, per their respective earnings, reported this week.

Dan Ives, Wedbush Securities global head of technology research, reinforced this idea, calling Nvidia “the foundation of the AI Revolution,” where demand fuels both building the further demand, CNBC reported.

A shift in the era of computing

Huang stressed that the industry is witnessing the start of a new era of computing, as, with AI, “every single layer of the computing stack is being fundamentally changed.” We are at the beginning of a 10-year build-out of this new era, he added.

“Just think: the computer industry has been largely the same for 60 years, and now, with AI and accelerated computing, every single layer of the computing stack is being changed. All of the computers we’ve created in the past, a trillion dollars, maybe more, of computers needs to now be transitioned, shifted to the new computing platform,” he said.

Also Read | How America’s AI boom is squeezing the rest of the economy

Nvidia became the first company to surpass $5 trillion in market value earlier this week. Furthermore, the chip maker announced a partnership with Samsung, where the Korean semiconductor giant plans to buy and deploy a cluster of 50,000 Nvidia GPUs to enhance its chip manufacturing for mobile devices and robots.

Looking ahead, Huang envisions a future where artificial intelligence will be able to “work,” rather than just serve as a tool. He projects that AI will reshape $100 trillion worth of industries around the globe, highlighted by the rise of fully automated manufacturing factories.

Related Topics:
Continue Reading

Trending