Nvidia (NASDAQ:NVDA) chief Jensen Huang on Wednesday reportedly downplayed growing concerns about the Artificial Intelligence (AI) bubble, differentiating the current surge in investment and valuation in the industry compared to the dot-com bubble in 2000.
Huang, in a CNBC interview, highlighted that what’s going on in the world versus what happened in 2000 is dramatically different. In 2000, all the internet companies combined were worth of $30 billion to $40 billion.
The Nvidia boss said that increasing investments in hyperscalers and other infrastructure company are growing naturally as a part of half-trillion-dollar capacity build out.
According to Huang, hyperscalers is already a $2.5 trillion business with a capital expenditure of about $500 billion.
“The transition from a classical CPU-based computing to now GPU-powered generative AI computing is just starting,” mentioned Huang during the interview.
Huang also confirmed that the tech giant had invested in the latest funding round for Elon Musk’s generative artificial intelligence xAI (X.AI) in an interview.
Last month, Nvidia announced its plans to invest up to $100B in Microsoft (MSFT)-backed OpenAI progressively to build and deploy at least 10 gigawatts of AI data centers with Nvidia systems.
Earlier this week, Paul Tudor, in another CNBC interview, said current market conditions feel like it’s 1999, indicating that “all the ingredients are in place” for a similar market environment.
This perspective suggested both opportunity and caution. While acknowledging the potential for significant gains, Tudor Jones noted that participating in such a market requires “really happy feet” because “there will be a really, really bad end to it.”