Nvidia CEO Jensen Huang says tens of trillions of dollars will be required to fully realize the AI infrastructure buildout.
In a new Fox Business interview, Huang says the world’s research and development budget of around $20 trillion will rotate into the “new ways of doing things” based on AI.
According to Huang, the AI infrastructure buildout will likely be the largest in human history, far surpassing the railroad and the internet revolutions.
“And over the course of the next 15 years, a lot of estimates come in at $85 trillion. And so, we’re going to build a lot of infrastructure.”
Huang also rejects the headline-grabbing AI bubble narrative, even though the firms involved in the buildout are no longer just relying on their free cash flow to fund capital expenditures (CapEx).
“During the time when companies build infrastructure, it is not unusual to borrow money. However, we’re nowhere near a bubble right now. And the reason why we know that is because every single GPU that Nvidia has in the cloud, and they’re in Azure, they’re in AWS [and] they’re in GCP. They’re all rented out. CoreWeave, they’re all rented out. And in fact, the demand is so high for our GPUs that the spot price of GPUs we sold a couple of years ago is going up. And so that tells you something.”
The Nvidia chief executive also notes that AI is at the point where companies could start monetizing the technology as they build the application layer of the stack.
“And so what’s happening right now is that every single industry is now jumping onto AI because of AI’s progress in the last couple of years, because of agentic systems, reasoning AIs, AI that is incredibly well grounded because it does research. And so it doesn’t hallucinate like it used to. The AIs are now able to solve problems. And as a result, you could build application companies on top of it.”
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