Nvidia Dismisses AI Bubble Fears, Citing Extremely Strong Demand
Nvidia Corp. CEO Jensen Huang has affirmed that massive investment in the artificial intelligence (AI) sector is a long-term business strategy underpinned by real and substantial market demand. The statement simultaneously dismissed concerns raised by some parties about the potential emergence of an “AI bubble” in the technology sector.
An AI bubble is a condition in which the market value, investment and expectations surrounding artificial intelligence technology soar far beyond its actual ability to generate profits.
“We are still a very long way from an AI bubble,” Huang told reporters in Tokyo on Wednesday (15/7), adding that demand for AI infrastructure currently remains extraordinarily strong.
According to Huang, the development of AI technology infrastructure is not a passing trend but a continuous process expected to take at least another decade to fully mature.
During his visit to Tokyo for a series of corporate engagements, Huang specifically highlighted Japan’s enormous potential in developing “physical AI”. This technology refers to the ability of robots and other hardware to operate autonomously in the real world.
He judged that Japan is in a highly advantageous position to lead this sector, supported by its historical track record of excellence in precision manufacturing and its capacity for large-scale production.
Furthermore, Huang views AI as a strategic solution for Japan in addressing its chronic labour shortage. “Through automation, AI and robotics, you can strengthen the existing workforce and raise national productivity,” he explained.
In line with the Japanese government’s ongoing push to promote domestic AI development for national security and data protection, Huang stressed the importance of the concept of technological sovereignty.
He stated that a nation’s intelligence must be nurtured, enhanced and developed independently within its own borders. In this regard, Huang revealed that Nvidia is preparing to make several major announcements regarding sovereign AI this week.
Huang’s remarks come amid increasingly fierce global competition over AI chip dominance, in which Nvidia currently holds a dominant position as the primary hardware supplier to the world’s technology companies.