Artificial intelligence is accelerating faster than ever, and according to Nvidia CEO Jensen Huang, we’ve officially entered a powerful new phase — a “virtuous cycle” of AI growth. Speaking at the Asia-Pacific Economic Cooperation (APEC) CEO Summit in South Korea, Huang explained how rapid advancements in AI models are driving massive industry investment, which then fuels even stronger AI models in return.

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This continuous loop, he said, is exactly why global tech spending is exploding, why new data centers are being built at record speed, and why industries across the world are preparing for a historic shift in how computing works.

AI’s Virtuous Cycle: Jensen Huang’s Vision for Continuous Growth

During his keynote address — dressed unusually in a formal suit instead of his iconic black leather jacket — Huang explained that artificial intelligence has unlocked a cycle of innovation the tech world has never experienced before.

He described it simply:

“AIs get better. More people use it. More usage creates profits. Profits fuel factories. Factories create even better AIs.”

This cycle, he explained, is self-sustaining. Once in motion, it fuels infinite momentum — not just for Nvidia, but for the entire AI ecosystem.

Why the AI Virtuous Cycle Matters

According to Huang, this cycle is the reason global companies are racing to pour unprecedented amounts of money into AI infrastructure. Every improvement in AI models increases demand. Higher demand pushes companies to invest in semiconductors, GPUs, data centers, and new computing tools. As AI capabilities increase, productivity rises — and so does profitability.

This loop repeats and accelerates.

Dan Ives, Wedbush’s global head of technology research, shared a similar view, calling Nvidia:

“The foundation of the AI revolution.”

He summarized the cycle as:

“More demand → more AI building blocks → more capex → even more demand.”

Big Tech’s Record-Breaking AI Spending

2024 and 2025 were already projected to be massive years for AI investment — but recent announcements have exceeded expectations. Major tech giants like Meta, Amazon, Alphabet, and Microsoft are collectively investing over $300 billion in AI technologies and data center expansion.

And the spending isn’t slowing down.

Their earnings reports show that capital expenditure will continue rising into 2026 and beyond, signaling a multi-year AI infrastructure boom.

For Huang, this growing investment isn’t surprising. He believes profitability sits at the core of the AI explosion.

He put it bluntly:

“When something becomes profitable, you want to manufacture more of it.”

The same logic applies to AI chips, GPUs, advanced servers, and every piece of the ecosystem that powers artificial intelligence.

A New Era of Computing Has Begun

Huang emphasized that AI is not just improving existing technologies — it is fundamentally transforming the entire computing stack.

From hardware to software, energy requirements to infrastructure, and models to applications, every layer of computing is being rewritten.

He explained:

“AI runs on GPUs, while traditional hand-coded software runs on CPUs. Every single layer of the computing stack is being changed.”

This is not a small shift. According to Huang, it marks the start of a 10-year global transformation, during which:

Data centers will be redesigned
Industries will adopt accelerated computing
Traditional software will be replaced by AI-driven systems
Trillions of dollars worth of old computers will transition to new platforms

For context: the computer industry has followed the same architecture for over 60 years. AI breaks that mold entirely.

Massive Market Shift: Replacing Trillions in Legacy Systems

Huang stressed that all the computing systems built in the last several decades — amounting to over a trillion dollars of infrastructure — must now evolve or be replaced. AI-accelerated computing is more efficient, more adaptable, and infinitely scalable compared to traditional CPU-based computing.

This represents one of the largest technological shifts since the invention of the internet.

Every industry — from healthcare to manufacturing, robotics to finance, logistics to entertainment — is now reconsidering how to modernize using AI-driven tools.

Nvidia and Samsung: A New Partnership Signaling Global Momentum

Earlier in the day, Nvidia announced a major collaboration with Samsung, marking a significant milestone for the South Korean tech industry.

Samsung plans to purchase and deploy 50,000 Nvidia GPUs to enhance chip manufacturing for:

Mobile devices
Robotics
AI automation
Smart factories

Wedbush analyst Dan Ives called the move a “watershed moment” for South Korea and a sign that AI infrastructure development is becoming truly global.

This partnership illustrates how far-reaching Nvidia’s influence has become and how crucial advanced GPUs are for next-generation chipmaking and automation.

From Tool to Workforce: AI Will Soon Be Able to “Work”

One of Huang’s most forward-looking predictions was the rise of AI as a functional workforce — not just a digital tool.

He explained that industries worldwide are building large-scale automated factories powered by artificial intelligence. These AI systems won’t simply assist humans; they will operate entire sections of manufacturing independently.

Huang expects AI to reshape $100 trillion worth of global industries over the next decade.

This includes:

Robotics and automation
Supply chain optimization
Semiconductor manufacturing
Automobile production
Agriculture and food processing
Energy systems
Consumer electronics
Medical technology

AI, he said, will evolve from a support function into an operational engine.

Why Nvidia Leads the AI Revolution

Nvidia remains at the center of this transformation for several reasons:

1. Dominance in GPU Technology

GPUs power nearly every major AI model, from ChatGPT to Midjourney to autonomous vehicle systems.

2. Software + Hardware Ecosystem

Nvidia’s CUDA platform, developer tools, and AI frameworks make it the industry’s most complete ecosystem.

3. Strategic Partnerships

Deals with Samsung, cloud providers, robotics companies, biotech firms, and global manufacturers position Nvidia as the backbone of AI innovation.

4. A Visionary CEO

Huang has consistently anticipated industry shifts long before competitors — from gaming GPUs to deep learning to accelerated computing.

Together, these factors cement Nvidia’s role as the defining force of the AI era.

Frequently Asked Questions

What does Jensen Huang mean by a “virtuous cycle” in AI?

Huang’s “virtuous cycle” refers to a self-reinforcing loop where improved AI models attract more users, generate more revenue, enable larger investments, and ultimately lead to even better AI systems. This cycle continuously accelerates AI development and industry growth.

Why is global AI investment increasing so rapidly?

Tech giants are investing heavily because AI is becoming essential for everything—from cloud computing to robotics, healthcare, chip manufacturing, and enterprise automation. As AI proves profitable, companies expand data centers, upgrade hardware, and build new AI infrastructure.

How is Nvidia driving the AI revolution?

Nvidia powers most modern AI models through its advanced GPUs, software platforms, and AI development tools. Its hardware is the global standard for training large AI systems, making Nvidia a central force in the current AI boom.

How will AI change the future of computing?

AI shifts the industry from CPU-based computing to GPU-accelerated computing. Every layer—hardware, software, data centers, and applications—is being redesigned for AI-driven workflows. This marks the biggest transformation in the computing industry in over 60 years.

Why is the Nvidia–Samsung partnership important?

Samsung is deploying 50,000 Nvidia GPUs to enhance chip production, robotics, and automated manufacturing. This partnership shows how AI is becoming essential in semiconductor innovation and large-scale industrial automation.

How long will the AI infrastructure boom last?

According to Huang, the world is entering a 10-year global AI build-out, during which old computing systems will be replaced with modern, AI-accelerated technologies.

Conclusion

Jensen Huang’s message is clear: the world is at the beginning of a historic transformation. Artificial intelligence has entered a self-reinforcing cycle that will reshape global industries, redefine computing, and drive unprecedented investment.With trillions of dollars of legacy systems set to be replaced and Big Tech pouring billions into the infrastructure of the future, the next decade will mark the most significant technological shift in generations.