Nvidia is pushing back on claims that the AI boom is overheating, arguing that the real story is a once-in-a-generation rebuild of the world’s computing infrastructure that is still in its early stages.
Speaking at the UBS Global Technology and AI Conference, Nvidia CFO Colette Kress says the market is missing the scale and inevitability of the AI shift underway.
She says the AI bubble narrative does not line up with what she is seeing inside the compute economy, noting that traditional CPUs have hit a wall and companies are being forced to re-architect how they run software and services.
“A lot of words really focusing on some very interesting thoughts regarding the supposed bubble. No, that is not what we see. What we see is two to three major transitions happening in the market. Let us not forget the need to transition to accelerated computing. Most of all the workloads done in data centers have been done with CPUs for years, but what our focus is on is transitioning that to GPUs. It is a necessary thing because there are just not going to be any improvements that we can see in terms of the other means of using CPUs.”
She then lays out the scale of what is coming, describing a multi-trillion-dollar transformation that will reshape global computing, cloud platforms and AI infrastructure.
“By the end of the decade, $3 to $4 trillion worth of AI or just total data center infrastructure moving that together. We are in the early parts of that transition, and what you are seeing, for example, is the hyperscalers, the very large cloud service providers as well, that is a very big part of the work they are doing.”
Kress says companies are already rebuilding core products around accelerated computing, from search to social media.
“So you are seeing them work in terms of revising search, revising for recommender engines and revising for the overall social media.”
She adds that a wave of new demand will come from both AI and emerging agentic systems.
“There is also that transition that is going to be necessary for AI, including what you need for accelerated computing and focusing on AI and agentic AI is moving in that piece. We are going to see that continue to grow through the rest of the decade as well.”
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