What Bubble? Nvidia CEO Says AI Needs Trillions More in Investments
Nvidia CEO Jensen Huang argues that the AI industry is not a speculative bubble, despite its massive spending and rapid growth. At the 2024 World Economic Forum in Davos, he emphasized that trillions more dollars are needed to build out the foundational infrastructure for AI—energy, chips, cloud, models, and applications—in what he calls a "five-layer cake." Huang described current investments, which reached around $1.5 trillion in 2025, as just the beginning of the largest infrastructure buildout in history. Critics point to circular financing and minimal returns for many organizations, with examples like Nvidia investing in OpenAI, which then buys Nvidia chips. Rival chipmakers and cloud providers are gaining traction as companies hedge against Nvidia’s dominance. Despite recent market volatility and caution from figures like JPMorgan’s Jamie Dimon, Huang insists that even larger investments are required to fully realize AI’s potential. Whether this unprecedented investment leads to lasting value or collapses remains uncertain.
