Well, everyone is concerned about what tech giants are doing when it comes to AI spending, but apparently, the NVIDIA CEO doesn’t feel the investments are something ‘surprising’.
NVIDIA’s Jensen Huang Calls the AI CapEX Bumps ‘Sustainable’, Rejecting the Overspending Claims
The AI frenzy is evolving with aggressive momentum heading into 2026, as we have seen the first indication that the technology is approaching an ‘inflection’ point, following quarterly earnings from Amazon, Google, and Meta. It appears Big Tech is in a race to spend more on AI, which is why CapEx figures have grown to levels no one would’ve imagined, exceeding $100 billion. And most of the spending is allocated to AI infrastructure, which has put several individuals in doubt about what’s happening ‘behind the scenes’. However, NVIDIA’s Jensen Huang isn’t worried about the gigantic commitments.
Demand is sky-high, and there’s a fundamental reason for that. We’re in the once-in-a-generation infrastructure build-out. AI over the last couple of years went from being curious to super useful. The inflection point also came with it. Profitable tokens. Anthropic is making great money. OpenAI is making great money.
– NVIDIA’s Jensen Huang
If someone still doesn’t know the issue here, let me elaborate. Over the past few weeks, we have seen Big Tech committing around $660 billion in capital spending, well above estimates. Well, the capital isn’t the only issue here; rather, the skepticism stems from the question of whether the expenditure would actually yield the results investors expect. But according to Jensen, AI has moved far from its ‘traditional’ chatbot image to broader impact, and he believes that software is now undergoing a revolution, driven by innovations from AI labs.
Image Credits: Bloomberg
We are addressing the largest software opportunity in history. For the very first time, software is not just a tool. A tool is like Excel. Now software uses tools. So these AI(s) use Excel. And, so I think the opportunity for this new era of software is incredible.
Well, the implementation layer of AI has evolved significantly in a matter of a few months, and we have already seen it in applications like Lovable, Vercel, OpenClaw, and many others, which benefit from agentic AI environments to deliver phenomenal end products. Brad Gerstner, the founder of the BG2 podcast, believes that Amazon, Meta, Google, Microsoft, and others are digging to find the “gold mine” of today’s era, and that investors should stay committed to what’s being done with AI; otherwise, they’ll miss the hype, similar to what we saw with cloud computing.
NVIDIA’s CEO seems confident about Big Tech spending, calling it ‘sustainable,’ but many argue that the technology might not yield the expected benefits, likening it to the dark fiber theory of the dot-com bubble. We will have to see how AI as a technology evolves, and in particular how it diffuses among the mass audience, since that is what will make it a worthwhile investment.
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