Nvidia CEO Says AI Investment Is Far From a Bubble

JAKARTA - Nvidia CEO Jensen Huang has dismissed concerns that the rapid investment in artificial intelligence or AI will lead to a technology bubble. According to Huang, demand is still very strong and the development of AI infrastructure needs to continue for at least a decade.

Kyodo News quoted as saying on Thursday, July 16, that Huang made the statement to reporters in Tokyo on Wednesday. He was in Japan to attend a number of company events.

"We are still far from an AI bubble," Huang said.

He assessed that AI investment is a long-term business strategy driven by strong demand.

"The demand is very strong. We have to build infrastructure for at least a decade," he said.

Huang also sees a big opportunity for Japan in the development of physical AI. This technology allows robots and other devices to work independently with the help of artificial intelligence.

"It's time for Japan because historically Japan is very strong in precision manufacturing and large-scale production," he said.

According to Huang, the combination of AI, automation, and robotics can help Japan deal with its severe labor shortage.

"With automation, AI, and robotics, you can strengthen the available workforce and increase national productivity," he said.

The Japanese government is pushing for the development of domestic AI as part of efforts to maintain national security and data protection.

"The intelligence of a country must be maintained, improved, and developed within the country," Huang said.

Nvidia is scheduled to announce a number of things related to sovereign AI this weekend. Sovereign AI refers to a country's ability to develop AI with data and infrastructure managed domestically.