AI Enters a ‘Virtuous Cycle,’ Says Nvidia CEO

AI has entered a 'virtuous cycle,' fostering continuous growth, says Nvidia CEO.

Artificial intelligence has entered a ‘virtuous cycle,’ fostering continuous industry growth, according to Nvidia CEO Jensen Huang at the Asia-Pacific Economic Cooperation CEO Summit in South Korea, reports CNBC.

He noted that significant improvements in neural networks lead to increased investment in the technology, further enhancing these networks.

“We have now reached a closed loop of favourable events,” he said.

Huang added that as AI improves, more people use it, which brings increased profits to companies that build more facilities to create even more advanced technology.

“This is why capital investments worldwide are growing so rapidly,” the entrepreneur emphasized.

Firms are spending billions to create infrastructure that powers artificial intelligence.

In October, Crusoe raised $1.375 billion to develop an AI ecosystem for OpenAI, while a group of investors, including BlackRock, Nvidia, Microsoft, and Elon Musk’s xAI, agreed to purchase Aligned from Macquarie Asset Management for $40 billion. The company builds and operates large campuses for cloud and enterprise clients with a total capacity of over 5 GW.

Meta, Amazon, Alphabet, and Microsoft announced plans to invest over $300 billion in 2025 in AI technologies and data center construction. The trend is expected to continue in 2026, as tech giants plan to further increase capital expenditures.

Huang stressed that profitability is at the core of the current AI investment boom.

“When something becomes profitable, you want to produce more of it,” he noted.

A New Era of Computing

Huang believes a new era of computing is beginning, as with the advent of artificial intelligence, “every level of infrastructure is undergoing fundamental changes.”

“We are at the start of a decade-long period of establishing a new era,” added the Nvidia CEO.

He emphasized that AI runs on graphics processors, while hand-written software runs on CPU.

“The entire software stack, from energy needs, chips, infrastructure, all software related to systems, AI models, applications… Every single level of computing will be fundamentally changed,” added the Nvidia CEO.

Partnerships

Huang visited South Korea for the first time in 15 years to announce new plans and deepen cooperation with major Korean tech companies like Hyundai Motor, Samsung, SK Group, and Naver.

South Korea will purchase over 260,000 new Nvidia graphics processors to meet growing AI demands, the government announced on Friday. About 50,000 units will be used for government initiatives, including the development of domestic models and a national data center.

The remaining 200,000 GPU will be allocated to Samsung, SK, Hyundai, and Naver.

Samsung announced plans to build an AI megafactory in partnership with Nvidia, integrating AI at all stages of semiconductor, mobile device, and robotics production. The facility will create an intelligent network capable of analyzing, predicting, and optimizing production in real-time.

Hyundai and Nvidia have joined forces to build AI infrastructure and develop technologies in the field of physical artificial intelligence. The partnership will focus on autonomous mobility, smart factories, and robotics. 

SK will create Asia’s first AI cloud.

Back in October, Nvidia introduced a system for connecting quantum computers to the company’s AI chips.