"The virtuous cycle of AI has arrived" — NVIDIA's CEO believes AI can address $100 trillion of the world's industries as the market accelerates

South Korea is currently hosting its APEC CEO Summit, and NVIDIA's CEO took to the stage on Friday to speak about the future of AI.

The keynote speech came just a couple of days after NVIDIA became the first company in history to hit a $5 trillion market valuation, a meteoric rise after becoming the first company with a $4 trillion valuation just a few months ago.

A dramatic spike in valuation, such as NVIDIA and other AI firms have experienced in 2025, has naturally led many experts to suggest that the AI market is more bubble than boom, especially with the cyclical nature of investments within the industry.

Bill Gates, for example, recently claimed that the world is in the middle of an AI bubble in which a lot of AI investments will be "dead ends." His words came as Microsoft's FY26 Q1 financial results were made public, in which it was revealed that the company's OpenAI investments might have incurred a massive $11.5 billion loss in the previous quarter.

NVIDIA's CEO, however, remains unfazed as usual. Huang believes the current market is doing just fine, and in fact, the circular system of investments and deals between AI firms is actually helping accelerate AI's growth.

Huang uses the virtuous cycle analogy to explain away the almost unbelievable rise in company value since the AI boom kicked off a few years ago:

"This is the reason why you're seeing the world's capex going so fast. There are two fundamental things that are happening. First is a transition, as I mentioned, from general-purpose computing to accelerated computing. Moore's law has really run out of steam, so we need another way of doing computation. NVIDIA's accelerated computing is the foundation layer for that. On top of accelerated computing, AI has now achieved the virtuous cycle."

The cycle Huang is referring to involves many of the most valuable companies in the world based on market cap. Together, the likes of Microsoft, Alphabet, Amazon, and Meta are spending more than $300 billion in 2025 to build data centers and to fund startups.

NVIDIA alone is investing $100 billion in OpenAI to build new data centers, while, according to Bloomberg, it's also invested in 59 AI startups. That's just scratching the surface of all the deals flying around at the top of the stock market, and Huang believes we're only at the start of a decade-long boom that will see data center buildouts at an unprecedented scale.

The massive sums of money might instill fear in some, but Huang has a good explanation as to why this is only the beginning of the AI boom.

"Every single layer of computing has been fundamentally changed," he states. "The computer industry has been largely the same for 60 years. Now, with AI and accelerated computing, every single layer of the computing stack is being changed. All of the computers we created in the past, a trillion dollars — maybe more — of computers need to now be transitioned, shifted to the new computing platform."

Huang adds that due to AI's position as something that "performs work" rather than just being another tool in the drawer, it has the ability to scale to extreme proportions.

He foresees AI addressing "$100 trillion of the world's industries" in the future, which, if you're what I'd now refer to as an organic worker, probably doesn't help assuage the fears of AI stealing your job.

(via CNBC)

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