Nvidia CEO Jensen Huang says the World is 'Racing' to Embrace AI Technology

In an interview with Liz Claman on "The Claman Countdown," Nvidia CEO Jensen Huang talked about artificial intelligence (AI) and other topics.

Huang, who co-founded the California-based chipmaker in 1993, told Claman that "everyone" is "racing" to embrace artificial intelligence technology.

He noted that adoption is happening "incredibly fast" among what he referred to as the "core technology creators, model developers, and companies focused on building consumer-facing AIs."

"The frontier models, and all of the startups trying to build a next-generation of frontier models, they’re racing to get to the next level," he added. According to Huang, agentic AI is "developing very nicely" and is "likely to emerge next." He added that the following phase would be physical AI.

"This is AI that understands the laws of the physical world. It understands things like inertia and gravity and cause and effect and object permanence, and we’ll use that for self-driving cars and robotics systems and things of that nature," he explained.

Huang stated that these industries are "emerging in waves" and "building upon one another."

Regarding data centers, he noted that capital expenditures are experiencing "significant growth" compared to the previous year.

"Not only is the capex larger, the amount of that capex dedicated to AI is going to be far greater," the Nvidia CEO said during the interview. "We’re seeing a very robust growth for this year compared to last year, and I think we’re teed up for some pretty great build outs of these data centers to produce essentially what I call AI factories, which in the future will transform energy, if you will, into digital intelligence… We’ve got several years, many years of build out to go."

In the interview, Huang also shared his thoughts on his meeting with President Donald Trump in late January. The U.S. currently has various semiconductor export controls for China.

Huang told Claman that Nvidia is "dedicated and very eager to collaborate with the Trump administration to help achieve its goals and hopes for its success."

"But the net of it all is, if you look at where Nvidia’s computers are that are going to China today and you compare it against what we just launched this quarter, this record-breaking quarter that we had with Grace Blackwell, the comparison of the technology, anywhere from 20 to 60 times higher performance is what we currently have in the United States, and so every day that goes by, the export-controlled technology is further and further behind, if you will, in a lot of ways. It’s another way of saying every day that goes by we’re making that technology slower and slower," he continued. "So I think the conversation is good, and we’re happy to share with the administration everything we know, so they can make the best decision."

The company reported $39.3 billion in revenue for the three-month period, reflecting a 78% rise compared to the same quarter last year. Its net income reached nearly $22.1 billion, an 80% increase year-over-year.

As of Thursday, Nvidia’s market capitalization was approximately $2.94 trillion.