{"id":117585,"date":"2025-11-05T23:35:14","date_gmt":"2025-11-05T23:35:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/117585\/"},"modified":"2025-11-05T23:35:14","modified_gmt":"2025-11-05T23:35:14","slug":"nvidia-boss-jensen-huang-dismisses-fears-of-an-ai-bubble","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/117585\/","title":{"rendered":"Nvidia boss Jensen Huang dismisses fears of an \u2018AI bubble\u2019"},"content":{"rendered":"

The boss of Nvidia, the near-$5 trillion chipmaker behind the artificial intelligence boom, sought to allay fears over the soaring valuations among big technology companies amid fresh warnings that \u201cbubbles\u201d are building up in global equity markets.<\/p>\n

Jensen Huang, founder and chief executive of Nvidia, told The Times: \u201cWe are all in a bubble, the question is where are you in that phase? I believe we\u2019re in the beginning of the build-out. It just happens to be with very large numbers.\u201d<\/p>\n

Huang, who was in London to receive the Queen Elizabeth Prize for Engineering<\/a> from the King, dismissed concerns that stock markets are on the verge of a correction, arguing that the impact of AI on the economy would be so large \u201cthat these numbers in percentage pale in comparison\u201d.<\/p>\n

He said that vast investment was needed to modernise computer infrastructure, asserting that AI is \u201ceffective and profitable, which is the reason why everybody is accelerating their build-out of artificial intelligence.<\/p>\n

\u201cWhen something is profitable, people want to make more of it. This is applying to every single technology company and every single computer company so that we can build into the AI era. This is just the beginning.\u201d<\/p>\n

Nvidia became the first company to pass the $5 trillion milestone<\/a> last week, its valuation lifted as a wave of multibillion-dollar deals among semiconductor manufacturers, data centre providers and the AI companies they power.<\/p>\n

Its shares began the week with a sharp fall and, after a brief mid-week bounce, continued to decline ending Wednesday down $3.48, or 1.8 per cent, at $195.21, valuing the business at $4.75 trillion.<\/p>\n

Huang, who was also presented with the Professor Stephen Hawking Fellowship by Lucy Hawking, daughter of Stephen Hawking, during his visit to The Cambridge Union, said that Nvidia\u2019s valuation \u201creflects the work that we do and the impact on the number of industries\u201d. <\/p>\n

\u201cUltimately, AI is the first technology in history that has the opportunity to directly benefit a hundred trillion dollars of the world\u2019s economy,\u201d he added.<\/p>\n

Huang also told the Financial Times that China would \u201cwin the AI race\u201d due to lower energy costs and looser regulation.<\/p>\n

The International Monetary Fund and the Bank of England have both warned about the broader economic impact if there is a stock market correction, defined as a 10 per cent fall from the most recent peak.<\/p>\n

Borge Brende<\/a>, the head of the World Economic Forum, joined those urging caution on Wednesday. \u201cWe could possibly see bubbles moving forward. One is a crypto bubble, second an AI bubble, and the third would be a debt bubble,\u201d he said.<\/p>\n

Brende added that AI offered the possibility of big productivity gains but could also threaten many white-collar jobs.<\/p>\n

\u201cWhat you could see, worst case, is that there is a \u2018Rust Belt\u2019 in those big cities that have a lot of back offices with white-collar workers that can more easily be replaced by this AI and increased productivity,\u201d Brende said, citing recent job cut announcements from companies such as Amazon and Nestl\u00e9.<\/p>\n

\u201cWe also know from history that technological changes over time lead to increased productivity, and productivity is the only way over time to increase prosperity,\u201d he added. \u201cThen you can pay people better salaries, and you have more prosperity in society.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The boss of Nvidia, the near-$5 trillion chipmaker behind the artificial intelligence boom, sought to allay fears over…\n","protected":false},"author":2,"featured_media":117586,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,85,46,125],"class_list":["post-117585","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-il","tag-israel","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/117585","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=117585"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/117585\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/117586"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=117585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=117585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=117585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}