Amid some eye-popping capital spending numbers from some of tech’s largest companies, Nvidia (NVDA) CEO Jensen Huang said the industry is in the midst of a “generational” buildout.
Appearing on CNBC, Huang, who has been at the forefront of the tech industry’s artificial intelligence revolution, said the buildout will take around seven years to get infrastructure to a “sustainable level.” In addition, he weighed in on some of the hyperscalers and how they are using AI and said that Meta (META) is among the most advanced users of AI at scale.
Huang, 62, added that the demand for AI accelerators is so strong that GPUs that were sold six years ago are still rising in price.
He also spoke about Amazon (AMZN), which just announced that it will spend $200B in capital spending in 2026, largely for the AI-specific needs of its Amazon Web Services unit. Demand for Nvidia’s AI products within AWS is “extremely strong,” and that other AI-focused companies, such as Anthropic (ANTHRO) and OpenAI (OPENAI), are still severely constrained by a lack of compute. As such, there is incredibly intense demand for advanced GPUs, Huang added.
Huang also discussed other topics, such as the race between the U.S. and China for the dominance of AI. He said that it makes no sense to concede access to the China market if a company wants to be a global player in AI.
Lastly, despite reports that Nvidia may not invest in OpenAI’s latest funding round, he said there is no friction or drama between the two companies.
Nvidia shares rose more than 7% on Friday.