NextFin News - In a decisive address delivered in Taipei on Tuesday, February 3, 2026, Nvidia CEO Jensen Huang dismissed growing market concerns regarding a potential artificial intelligence bubble. Addressing a global audience of investors and industry leaders, Huang countered recent skepticism by highlighting the fundamental shift in global computing infrastructure. The CEO’s remarks come at a critical juncture as Nvidia navigates complex multi-billion-dollar partnerships, most notably with OpenAI, and continues to report record-breaking financial performance driven by insatiable demand for its Blackwell and Vera Rubin GPU architectures.
According to OpenTools, Huang specifically addressed rumors of a "stalled" $100 billion investment in OpenAI, clarifying that while the headline figure represents a long-term infrastructure commitment rather than a direct cash infusion, Nvidia’s involvement remains substantial. The partnership, formalized through a letter of intent, focuses on deploying 10 gigawatts of AI data center capacity. Huang emphasized that the first gigawatt of this deployment, powered by the Vera Rubin platform, is on track for the second half of 2026. By anchoring these financial commitments to physical hardware and power capacity, Huang argued that the current AI expansion is built on a foundation of industrial utility rather than speculative fervor.
The distinction between "bubble" and "build-out" is supported by Nvidia’s recent fiscal data. The company has seen its revenue projections climb toward an estimated $200 billion annually by 2027, a trajectory fueled by the transition from general-purpose CPU-based computing to accelerated GPU-based processing. This transition is not merely a software trend but a massive capital expenditure cycle. Industry analysts note that the demand for AI infrastructure is projected to consume up to 15% of new U.S. power capacity by 2030. Huang’s defense rests on the premise that as long as enterprises and nation-states require these physical assets to remain competitive, the market remains grounded in reality.
However, the path forward is not without friction. Reports from the Wall Street Journal have suggested internal deliberations within Nvidia regarding the business discipline of its primary partners. Huang addressed these claims by reaffirming his confidence in OpenAI CEO Sam Altman, while simultaneously acknowledging the competitive pressures from other tech giants like Google and Anthropic. This competitive landscape, according to Huang, actually serves as a safeguard against a bubble; the diversity of players investing tens of billions into proprietary AI models ensures that the demand for Nvidia’s silicon is diversified across the entire tech ecosystem.
From a macroeconomic perspective, the current AI cycle differs from the dot-com era due to the immediate monetization of the technology by hyperscalers. Companies like Microsoft, Amazon, and Meta are not just promising future returns but are actively integrating AI to optimize existing high-margin businesses. Huang pointed out that the "circular economy" of AI—where Nvidia’s customers use its chips to generate the revenue needed to buy more chips—is a sign of a healthy, self-sustaining market rather than a fragile bubble. The scale of these investments, such as Amazon’s reported $50 billion interest in AI infrastructure, underscores a collective bet on a new industrial revolution.
Looking ahead, the focus of the AI industry is expected to shift from training large language models to the massive scale-up of inference. This transition will require even greater quantities of specialized hardware, potentially insulating Nvidia from a market correction. As U.S. President Trump’s administration continues to emphasize American technological supremacy, the strategic importance of Nvidia’s supply chain—particularly its reliance on Taiwan-based TSMC—remains a focal point of both growth and geopolitical risk. Huang’s proactive stance in Taipei suggests that Nvidia is not only prepared for this future but is actively shaping the regulatory and economic environment to ensure the AI era remains a permanent fixture of the global economy.
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