Jensen Huang rejects AI bubble fears, says Nvidia sees ‘something very different’

Nvidia CEO Jensen Huang has spoken out against the possibility of an AI bubble. Huang gave a three-point rebuttal explaining why the AI industry is not in a bubble. The core argument from Huang goes like this: the shift happening underneath due to AI is much bigger than just chatbots, and there is a fundamental change in how the world does computing that is leading to the massive demand for GPUs.

“There’s been a lot of talk about an AI bubble,” Huang was quoted by CNBC as saying. “From our vantage point we see something very different.”

Huang gave three arguments to justify his view.

First, the Nvidia CEO says that Moore’s law — the idea that CPUs keep getting faster and cheaper — has run its course. He says that fields like banking, e-commerce and ad recommendations are now shifting from relying heavily on CPUs to running on GPUs, leading to higher demand for his chips.

Second, Huang argues that modern recommendation systems, the tools used to decide what show or ad you see next on various apps, are going generative AI. This means that the technology which was earlier running on CPUs is also now shifting to GPUs.

Third, Huang points to the rise of agentic AI systems like ChatGPT, Gemini or Grok which can make decisions on behalf of the user, leading to an ever-increasing demand for computing power.

“If you take [these trends] into consideration,” he said, “you’ll come to the conclusion that in fact, what is left over to fuel that revolutionary agentic AI is not only substantially less than you thought — and all of it justified.”

What are other AI leaders saying?

The statement by Huang comes as there is a growing consensus in the AI world that the industry could be in a bubble. The fears come as investor worry rises about billions of dollars of AI investment not showing results soon enough.

Google CEO Sundar Pichai agreed to the possibility of an AI bubble in a recent interview with the BBC.

“I think no company is going to be immune, including us,” the Alphabet CEO said.

Meanwhile, OpenAI CEO Sam Altman and Meta CEO Mark Zuckerberg have also admitted the possibility that there could be an impending AI bubble, similar to the dot-com bubble in the early days of the internet.