Nvidia CEO Jensen Huang outlines what's fueling the positive cycle and why the AI revolution is only getting started.

According to Jensen Huang, CEO of Nvidia, AI has entered a positive cycle that is propelling the industry's explosive growth. Billions of dollars have been invested in AI technologies by major tech businesses. This is the start of a new computing era that will further transform businesses, Huang stressed.

Jensen Huang, the CEO of Nvidia, declared on Friday that artificial intelligence had entered a "virtuous cycle," indicating a turning point for the industry's steady, quick expansion that will support the AI boom.

Speaking at the CEO Summit of the Asia-Pacific Economic Cooperation in South Korea, Huang claimed that as AI models get better, more investment is being drawn to them, which propels the technology forward. "We have now achieved what is called the virtual cycle," he stated, describing this loop.

His remarks at the APEC gathering coincide with the fact that large tech firms are investing billions to develop AI-related infrastructure and support its end users.

"The AIs improve. It is used by more people. It is used by more people, generates more revenue, and builds more factories, all of which enable us to develop even more advanced AIs. According to CNBC, Huang stated, "The reason why you're seeing the world's capital expenditures moving so quickly is because the virtual cycle of AI has been designed."

Businesses place large bets on AI spending.

Huang emphasized that the present surge in AI capital investment is mostly driven by profitability. The financial success gained from better AI encourages further investment, much like successful chip manufacturing encourages the construction of additional plants.

With IT behemoths like Microsoft, Amazon, Alphabet, and Meta expected to spend over $300 billion this year on data center expansions and AI technology, this investment is already enormous. According to their individual earnings reports this week, the IT giants intend to increase capital expenditures once further, thus this trend appears to be continuing into 2026.

This notion was reaffirmed by Dan Ives, global head of technology research at Wedbush Securities, who referred to Nvidia as "the foundation of the AI Revolution," where demand drives both, increasing demand, according to CNBC.

A change in the computing era

Huang emphasized that because AI is "fundamentally changing every single layer of the computing stack," the industry is witnessing the beginning of a new era of computing. He went on to say that we are just beginning the 10-year build-out of this new era.

Consider this: the computer business has been relatively same for the past 60 years, but today, with the advent of artificial intelligence (AI) and faster computing, every tier of the computing stack is changing. All of the computers that we have built in the past—perhaps a trillion dollars worth—need to be moved to the new computing platform, he stated.

Earlier this week, Nvidia became the first business to reach $5 trillion in market value. Additionally, the chip manufacturer revealed a collaboration with Samsung, the Korean electronics behemoth, which intends to purchase and install a cluster of 50,000 Nvidia GPUs to improve its chip production for robotics and mobile devices.

Huang sees a time when artificial intelligence will be more than simply a tool; it will be able to "work." According to his predictions, AI will transform $100 trillion worth of businesses globally, with the emergence of completely automated manufacturing facilities serving as a prime example.