Nvidia CEO Jensen Huang said on Friday that artificial intelligence has reached a "virtuous cycle" and promoted the industry's continued growth. Speaking at the APEC CEO Summit in South Korea, he said huge improvements in AI models are leading to more investment in the technology, which in turn is further improving AI models.
"We have now achieved what is called a virtual cycle," he said on stage at the event, wearing a suit instead of his usual black leather jacket.
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His comments come as big tech companies are spending billions of dollars building AI-related infrastructure and providing services to end users.
This year is expected to be a big year for artificial intelligence spending, with Meta, Amazon, Alphabet and Microsoft announcing plans to invest more than $300 billion in artificial intelligence technology and data center construction. That appears to be continuing into 2026, as the two tech giants reported this week that they plan to increase capital spending again.
Dan Ives, global head of technology research at Wedbush Securities, said after Huang's speech that Nvidia is "the foundation of the artificial intelligence revolution."
He describes the virtuous cycle of AI as: "The more demand, the more building blocks for AI. Demand creates more demand and capital expenditures."
Huang emphasized that profitability is at the core of the current AI capital investment boom.
He added: "When something becomes profitable, you want to make more of it, just like when you make chips, wafers and DRAM, if the manufacturing of those chips is profitable, you want to build more factories to make more chips."
new era of computers
This is the beginning of a new era of computing, because with artificial intelligence, "every layer of the computing stack is fundamentally changing," Huang said onstage.
He added that we are at the beginning of a 10-year construction of this new era.
"AI runs on the GPU (graphics processing unit), while hand-coded software runs on the CPU (central processing unit). This entire software stack, from energy, chips, infrastructure, all system-related software, AI models and application requirements, every layer of computing has fundamentally changed," Huang said.
"Just think about it: The computer industry has been essentially unchanged for 60 years, and now, with the advancement of artificial intelligence and accelerated computing, every layer of the computing stack is changing. All the computers we've created in the past, a trillion dollars, maybe more, now need to be converted and moved to new computing platforms."