“The virtuous cycle of AI has arrived” — NVIDIA’s CEO believes AI can address $100 trillion of the world’s industries as the market accelerates

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NVIDIA’s CEO recently spoke at the APEC CEO Summit in South Korea, discussing the future of artificial intelligence.

The presentation followed closely on the heels of NVIDIA achieving a historic milestone: becoming the first company ever valued at $5 trillion. This came just months after they first reached a $4 trillion valuation, marking an incredibly rapid increase in their worth.

I’ve been watching the huge jump in company values – NVIDIA and other AI businesses saw this happen in 2025 – and it’s led a lot of people to wonder if we’re in an AI bubble rather than a real, lasting growth period. It’s easy to think that way, considering how investments in this industry tend to go up and down.

Bill Gates recently suggested that there’s a lot of hype around AI right now, and many AI investments won’t pan out. He said this as Microsoft announced its financial results, which showed that its investments in OpenAI may have resulted in a significant loss of $11.5 billion in the last quarter.

Despite recent market challenges, NVIDIA’s CEO, Jensen Huang, remains optimistic. He thinks the market is healthy and that the way AI companies are investing in and partnering with each other is actually speeding up progress in the field.

We’ve entered a positive feedback loop with AI. As the technology improves, more people start using it, leading to increased revenue and expansion. This allows us to invest in developing even more advanced AI, attracting even more users – a self-reinforcing cycle that’s now in motion.

NVIDIA CEO Jensen Huang

Huang explains the incredible increase in the company’s value since the recent surge in AI by comparing it to a virtuous cycle – a positive feedback loop where success builds on itself.

Here’s why global investment in technology is increasing so rapidly. There are two main factors at play. First, we’re shifting from traditional computing to more powerful, accelerated computing because Moore’s Law—the idea that computing power doubles roughly every two years—is slowing down. NVIDIA’s accelerated computing provides the base for this shift. And now, with the rise of AI, we’re seeing a positive feedback loop where advancements in AI drive further investment and innovation.

Huang is talking about a trend among the world’s most valuable companies, like Microsoft, Google (Alphabet), Amazon, and Meta. They’re collectively investing over $300 billion in 2025 – building data centers and supporting new companies – to drive this trend forward.

NVIDIA is heavily invested in the growth of artificial intelligence, committing $100 billion to build data centers for OpenAI and also funding 59 other AI startups, as reported by Bloomberg. NVIDIA’s CEO believes this is just the beginning of a ten-year period of rapid expansion, with data center construction happening on a scale never seen before.

Every single layer of computing has been fundamentally changed.

NVIDIA CEO Jensen Huang

While the huge amounts of investment could seem daunting, Huang believes this is actually just the start of rapid growth in artificial intelligence.

He explains that computing is undergoing a massive shift. For six decades, the computer industry has remained largely unchanged, but now, thanks to advancements in AI and accelerated computing, every aspect of how computers work is being revolutionized. This means that all existing computers – representing potentially trillions of dollars in infrastructure – need to be updated and adapted to this new computing model.

Huang explains that because AI actually *does* work, instead of simply being a tool, it can grow and expand to a massive scale.

He predicts that AI will eventually impact industries worth around $100 trillion worldwide. For those of us currently employed in traditional jobs, this doesn’t exactly ease concerns about AI replacing human workers.

(via CNBC)

FAQ

Is NVIDIA the most valuable company in the world?

I can’t believe NVIDIA just hit a $5 trillion market cap! It’s totally amazing – they’re the first company *ever* to do that. As of today, they’re sitting at $5.024 trillion, which puts them way ahead of Apple at $4.030 trillion and Microsoft at $3.869 trillion. It’s incredible to watch!

Is an AI bubble going to burst?

There are good points to be made on both sides of this debate. While many experts think the current market is in a unique and unsustainable bubble, NVIDIA’s CEO argues that we’re actually at the beginning of a ten-year period of growth driven by artificial intelligence.

Why is NVIDIA’s market value growing so quickly?

NVIDIA currently dominates the market for the powerful GPUs needed for artificial intelligence, and the rapid growth of AI is causing its company value to skyrocket. According to its CEO, the existing computer infrastructure needs a major overhaul to support AI, and NVIDIA is leading that transformation.

Is the AI boom sustainable?

It’s unclear if the current excitement around AI will last. Most AI companies still aren’t succeeding, people aren’t quickly embracing the technology, and the stock market isn’t showing much growth specifically because of AI. Concerns about energy shortages and supply chain issues are also adding to the uncertainty.

Is the AI bubble similar to the dot-com bubble?

Both of these periods of rapid growth have common traits: companies being valued very highly, a lot of excited investment, and questions about whether the businesses are truly sustainable or just relying on repeated funding. It’s still uncertain if they will both end with a dramatic collapse, but the similarities are striking.

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2025-11-01 16:12