Davos, Switzerland | January 22, 2026

Nvidia CEO Jensen Huang has said the global surge in artificial intelligence (AI) investment is only just beginning. Speaking at the World Economic Forum in Davos, Huang stated that building and powering generative AI models will require “trillions” of dollars in new infrastructure spending. He added that the current boom marks the largest infrastructure buildout in human history.

Huang explained that the AI industry is currently only “a few hundred billion dollars into it”, but the scale of investment needed is far greater. He highlighted that the major areas needing massive upgrades include energy, cloud computing, and electronics. The rapid rise in demand for AI services has pushed companies to expand their data centres, often relying heavily on Nvidia’s high-performance chips.

Nvidia’s GPUs, originally designed for 3D gaming, have become central to training and running large language models (LLMs) such as ChatGPT and Google Gemini. This shift has helped Nvidia reach a market value of over $5 trillion in October, although it later fell by more than $600 billion. LLM developers, including OpenAI, are investing heavily in Nvidia products as they prepare for a predicted surge in AI usage.

When asked about concerns that the AI spending spree could be a bubble, Huang rejected the idea. He said the large investments are necessary to build the infrastructure that supports AI at every level. “The AI bubble comes about because the investments are large. And the investments are large because we have to build the infrastructure necessary for all of the layers of AI above it,” he said. He also reassured that AI would create new job opportunities rather than destroy them.

Microsoft CEO Satya Nadella also spoke at the forum, offering a slightly cautious view. He warned that AI adoption must be widespread to avoid a market crash, stating, “For this not to be a bubble by definition, it requires that the benefits of this are much more evenly spread.” However, Nadella remained optimistic about AI’s potential, saying the technology would grow quickly by building on existing cloud and mobile systems and help fuel economic growth worldwide.

AI Boom in Davos: Nvidia Chief Says “Trillions” Needed for Next-Gen Infrastructure

At the World Economic Forum in Davos, Nvidia CEO Jensen Huang said the AI revolution is just beginning. He explained that the infrastructure needed to develop and run generative AI models will require “trillions” of dollars in investment. According to him, this AI surge has started the largest infrastructure buildout in human history, and the spending is only going to rise.

Huang said that the AI industry is currently “a few hundred billion dollars into it”, but the real costs are still ahead. He pointed out that big investments are needed in areas like energy, cloud computing, and electronics. This is because AI systems require powerful data centres and advanced technology to operate smoothly, especially for large language models like ChatGPT and Google Gemini.

Nvidia has become a major player in AI because its GPUs, originally made for gaming, are now essential for training and running AI models. This shift helped Nvidia reach a market value of over $5 trillion in October, although the number later dropped by more than $600 billion. Many AI companies are investing heavily in Nvidia hardware as they prepare for a growing demand for AI services worldwide.

When asked about fears of an AI bubble, Huang dismissed the worries. He said the spending is necessary to build the infrastructure that supports AI growth. “The AI bubble comes about because the investments are large. And the investments are large because we have to build the infrastructure necessary for all of the layers of AI above it,” he said. He also stressed that AI will create new jobs instead of destroying them. Microsoft CEO Satya Nadella also spoke at Davos and said that AI must reach more people to avoid a crash, adding “For this not to be a bubble by definition, it requires that the benefits of this are much more evenly spread.” He remained hopeful that AI would boost global economic growth.