<\/p>\n
Nvidia CEO Jensen Huang said on Friday that artificial intelligence had reached a \u201cvirtuous cycle,\u201d signaling a tipping point for continuous, rapid growth in the industry, which will fuel the AI boom.<\/p>\n<\/div>\n
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 \u2014 which, in turn drives further advancements in the technology. Describing this loop, he said, \u201cWe have now achieved what is called the virtual cycle.\u201d<\/p>\n<\/div>\n
His comments during the APEC event come as major tech companies are spending billions to build out AI-related infrastructure<\/a> and serve its end users.<\/p>\n<\/div>\n \u201cThe 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\u2019re seeing the world\u2019s capex going so fast,\u201d Huang was quoted as saying by CNBC<\/i>.<\/p>\n<\/div>\n 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.<\/p>\n<\/div>\n This investment is already huge, with tech giants like Meta<\/a>, 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.<\/p>\n<\/div>\n Dan Ives, Wedbush Securities global head of technology research, reinforced this idea, calling Nvidia \u201cthe foundation of the AI Revolution,\u201d where demand fuels both building the further demand, CNBC <\/i>reported.<\/p>\n<\/div>\n Huang stressed that the industry is witnessing the start of a new era of computing, as, with AI, \u201cevery single layer of the computing stack is being fundamentally changed.\u201d We are at the beginning of a 10-year build-out of this new era, he added.<\/p>\n<\/div>\n \u201cJust 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\u2019ve created in the past, a trillion dollars, maybe more, of computers needs to now be transitioned, shifted to the new computing platform,\u201d he said.<\/p>\n<\/div>\nCompanies bet big on AI spending<\/h2>\n
A shift in the era of computing<\/h2>\n