"Different from the dot-com bubble...last year marked an inflection point for AI"
Jensen Huang, CEO of NVIDIA, has expressed the view that the scale of artificial intelligence (AI) investments by major big tech (large information technology) companies is "appropriate and sustainable."
In an interview with U.S. business channel CNBC on this day, CEO Huang said, "Demand for AI is going through the roof, and there is a fundamental reason for that," adding, "We are in an era of infrastructure build-out that comes once in a generation. It is the largest infrastructure build-out in human history."
In particular, referring to Meta's recent strong earnings, he said, "There is no company that utilizes AI better than Meta," and added, "They are demonstrating that in their results. That is precisely why they are investing so aggressively."
CEO Huang also rejected the frequent comparison of the recent AI boom to the "dot-com bubble" of the early 2000s. Unlike that time, when many companies received investment without engaging in real business operations, he cited the fact that NVIDIA's graphics processing units (GPUs) are now being used 100% in actual work, and that demand is so strong that even six-year-old legacy GPUs have risen in price. "(During the dot-com bubble) there was 'dark fiber' that was laid but not used," he said. "Today, there is no such thing as a 'dark GPU.'"
He also pointed out that AI companies such as OpenAI and Anthropic are already generating 20 billion dollars in annualized revenue, adding, "Last year, we witnessed an inflection point for AI." The combined projected capital expenditures (CAPEX) for this year by major AI companies known as "hyperscalers" amount to 660 billion dollars. NVIDIA is viewed as the company that benefits most directly from this expansion of AI investment by major technology firms.
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