Inside AI’s explosive growth: Nvidia CEO Jensen Huang explains the ‘virtuous cycle’
Nvidia CEO Jensen Huang, a visionary at the forefront of the AI revolution, recently offered a compelling perspective on artificial intelligence’s current trajectory: it has entered a “virtuous cycle” of relentless, self-sustaining growth. Speaking at the Asia-Pacific Economic Cooperation CEO Summit in South Korea, Huang clarified that this isn’t just a fleeting trend, but rather a self-perpetuating loop of positive developments.
He articulated the core idea simply: as neural networks grow more sophisticated and powerful, they naturally attract greater investment. This influx of capital then funnels right back into further enhancing these very networks, creating an upward spiral of innovation. “We have now reached a closed loop of favourable events,” Huang emphasized, highlighting the inherent momentum of this phenomenon.
According to Huang, the engine powering this remarkable cycle is pure profitability. As AI tools improve, they become more widely adopted, which in turn leads to increased profits for the companies driving this technology. These profits are then reinvested into building even more advanced infrastructure and pushing technological boundaries. “This is why capital investments worldwide are growing so rapidly,” the entrepreneur noted, underscoring the massive financial commitments being made. Indeed, the numbers are striking: Crusoe recently secured an impressive $1.375 billion to develop an AI ecosystem for OpenAI. A consortium of investors, including heavyweights like BlackRock, Nvidia, Microsoft, and Elon Musk’s xAI, is even set to acquire Aligned from Macquarie Asset Management for a staggering $40 billion—a company known for building and operating vast data center campuses with a combined capacity exceeding 5 gigawatts. And looking ahead, tech giants like Meta, Amazon, Alphabet, and Microsoft have pledged to invest over $300 billion in 2025 alone into AI technologies and new data center construction, with plans to further increase capital expenditures into 2026. Huang’s message is unequivocal: “When something becomes profitable, you want to produce more of it,” illustrating the commercial imperative behind this unprecedented investment boom.
The dawn of a new computing epoch
Huang firmly believes we are standing at the threshold of an entirely new era of computing. The advent of artificial intelligence, he declared, isn’t just an incremental improvement; it’s fundamentally reshaping every single layer of existing infrastructure. “We are at the start of a decade-long period of establishing a new era,” he stated, signaling a profound transformation over the coming years. He further elaborated that while traditional, hand-written software typically relies on CPUs, the intensive computational demands of AI are met by graphics processors (GPUs). This distinction is pivotal, implying a systemic overhaul: “The entire software stack, from energy needs, chips, infrastructure, all software related to systems, AI models, applications… Every single level of computing will be fundamentally changed,” Huang explained, painting a picture of a comprehensive technological paradigm shift.
Forging deeper ties in South Korea
Huang’s recent visit to South Korea, his first in 15 years, served to highlight Nvidia’s strategic focus on the region. The trip aimed to announce new initiatives and solidify collaborations with key Korean tech giants, including Hyundai Motor, Samsung, SK Group, and Naver. This high-profile visit quickly yielded significant results: the South Korean government announced plans to acquire over 260,000 new Nvidia graphics processors to meet the nation’s burgeoning AI demands. Fifty thousand of these units are earmarked for government-led projects, including the development of domestic AI models and a national data center, while the remaining 200,000 GPUs will be distributed among Samsung, SK, Hyundai, and Naver.
These partnerships are poised to revolutionize AI integration across industries. Samsung, for instance, is joining forces with Nvidia to construct an AI “megafactory,” integrating AI across all facets of its production, from semiconductors to mobile devices and robotics. This advanced facility is envisioned as an intelligent network capable of real-time analysis, prediction, and optimization of manufacturing processes. Meanwhile, Hyundai and Nvidia are collaborating on robust AI infrastructure and the development of “physical artificial intelligence,” with a sharp focus on autonomous mobility, smart factories, and robotics. Not to be outdone, SK Group is gearing up to establish Asia’s first dedicated AI cloud, further cementing the region’s position at the forefront of global AI innovation.
