Jensen Huang Reportedly Downplays AI Bubble Concerns: 'What's Going On In The World Versus What Happened In 2000 Is Just Dramatically Different'

Nvidia Corp. (NVDA) co-founder and CEO Jensen Huang on Wednesday reportedly downplayed growing concerns of an AI bubble, seeking to differentiate the current surge in investments and valuations in the industry from the dotcom bubble in 2000.

“What’s going on in the world versus what happened in 2000 is just dramatically different. Back then, there were pets dot com, hospitals dot com… all of the internet companies combined were what, $30-$40 billion in size,” Huang said in a CNBC interview.

As for the massive investments in hyperscalers and other AI infrastructure companies, Huang said that they are “naturally growing” on their own as part of a half-trillion-dollar capacity buildout.

“If you look at the hyperscalers now, that’s where the first trance of AI infrastructure is building. If you look at hyperscalers, that’s $2.5 trillion of business already operating today. That $2.5 trillion business, the capex that goes underneath that… call it about $500 billion, that transition from a classical CPU-based computing to now generative AI computing, powered by GPUs, that transition is just starting,” he said in the interview.

Nvidia’s shares were up nearly 2% in Wednesday’s opening trade. Retail sentiment on Stocktwits around the company trended in the ‘bearish’ territory.

Huang’s comments come amid growing concerns that circular financing is fueling an AI bubble. Circular financing in this case refers to the web of deals entered into by multiple parties, wherein one invests money in a company, and that company goes on to invest in a third company, which makes purchases with the first company, and so on.

Some of these examples include Nvidia’s $100 billion deal with OpenAI, which is in turn buying cloud computing from Oracle Corp. (ORCL), which is buying AI chips from Nvidia. Nvidia is also an investor in CoreWeave Inc. (CRWV), which has a deal with OpenAI for cloud infrastructure.

More recently, Nvidia participated in Elon Musk-led xAI’s latest fundraising round, investing $2 billion in the equity portion of a $20 billion financing that also includes debt. Huang said that he is “super excited” about xAI’s financing opportunity. “The only regret I have about xAI is I didn’t give him (Musk) more money. Almost everything that Elon’s part of, you really want to be a part of as well,” he said in the interview, adding that he is “delighted” about the deal.

NVDA stock is up 38% year-to-date and 45% over the past 12 months.

Also See: Gold Price Surges To New Highs Ahead Of Fed Minutes, Analyst Reportedly Says $4,400 Possible By First Half Of 2026

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