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Nvidia CEO Details AI Growth Cycle and Announces Samsung Partnership

2025-10-31

The BareStory

Nvidia CEO Jensen Huang stated on Friday that artificial intelligence has entered a "virtuous cycle" of continuous growth. Speaking at the APEC CEO Summit in Gyeongju, South Korea, Huang claimed that profitability is driving the current high level of capital investment in the technology. The remarks came as Nvidia announced a new partnership with Samsung and shortly after Nvidia became the first company to exceed a $5 trillion market valuation earlier in the week.

According to Huang, the cycle functions by better AI attracting more users, which generates more profit and leads to the construction of more factories, enabling the development of even better AI. He said the industry is at the start of a 10-year transition for computing, stating that over a trillion dollars of existing infrastructure will need to be updated for the new platform. Huang predicted a future where AI could "work" and reshape industries he estimated to be worth $100 trillion globally.

Under the new partnership, Samsung plans to acquire and deploy a cluster of 50,000 Nvidia GPUs to improve its manufacturing of chips for mobile devices and robots. This investment is part of a wider trend, as companies including Meta, Amazon, Alphabet, and Microsoft were expected to invest a combined total of over $300 billion in AI and data centers this year. According to their earnings reports, these companies plan to increase capital expenditures again in 2026.

Following the CEO's speech, Dan Ives, a global head of technology research at Wedbush Securities, described Nvidia as the "foundation of the AI Revolution," according to one summary.

Left Perspective

  • AI has entered a self-perpetuating "virtuous cycle" of growth.
  • A massive, decade-long transition in computing infrastructure is underway.
  • AI is predicted to fundamentally reshape the global economy.

Right Perspective

  • Major technology firms are making substantial capital investments in AI.
  • Nvidia's market position reflects high investor confidence.
  • The technology is being actively integrated into corporate manufacturing.

How it may affect me

As a U.S. reader:

• Heavy investment in AI by U.S. tech giants may affect the stock market, impacting retirement and investment accounts with exposure to these companies.

• A predicted 10-year update to computing infrastructure could reshape industries, potentially affecting jobs as AI technology is adopted more widely to “work.”

• AI investment in manufacturing may affect the future production and capabilities of consumer goods such as mobile devices and robots.

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