Nvidia (NVDA) chief executive Jensen Huang says hyperscalers are already generating trillions of dollars in revenue that is now being driven by artificial intelligence.
In a Bg2 Pod interview, Huang blasts skeptics who say hyperscalers are spending hundreds of billions of dollars in AI while generating little to no revenue.
He says hyperscalers such as Amazon (AMZN), Microsoft (MSFT), Meta (META), and Alphabet (GOOGL) have fully pivoted their revenue bases from traditional computing to AI. That shift, he suggested, is now central to the services consumers use daily, from video platforms to social media.
“What is that industry anyways? What is the industry already in the hyperscale? What is the hyperscales between… [Trillions.] Yeah, exactly. By the way, that industry is going to AI. Before anybody starts at zero, you got to start there…
Yes, and I would also say we’re already there. Because the hyperscalers, they went from CPUs to AI. Their entire revenue base is all now AI-driven.
You can’t do YouTube Shorts without AI. You can’t do—you know, you can’t do any of this stuff without AI. The amazing things that Meta is doing for customized content, personalized content, you can’t do that without AI.
It’s all of that stuff that used to be humans, doing content—a priori creating four choices that are then selected by a recommender engine. And now, it’s an infinite number of choices generated by an AI, right?”
On supply concerns, Huang rejects the notion that the market could face a glut of chips anytime soon.
“Until we fully convert all general-purpose computing to accelerated computing and AI. Until we do that, I think the chances are extremely low.”
Last week, Meta CEO Mark Zuckerberg said he has weighed the risks and the rewards of pouring hundreds of billions of dollars into the AI race.
While Zuckerberg acknowledged that the financial stakes are extraordinary, he highlighted that falling behind is not an option for Meta.
“And if we end up misspending a couple of hundred billion dollars, I think that that is going to be very unfortunate, obviously. But what I’d say is I actually think the risk is higher on the other side. If you build too slowly, and then super intelligence is possible in three years, but you built it out assuming it would be there in five years, then you’re just out of position on what I think is going to be the most important technology that enables the most new products, innovation, and value creation in history.”
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