(MENAFN- The Arabian Post) Nvidia CEO Jensen Huang dismissed assertions that the artificial intelligence boom is mirroring the dot-com bubble, saying the current momentum rests on strong fundamentals rather than speculation. He defended Nvidia's recent investments in AI startups and pitched infrastructure build-out as the engine sustaining growth.

During a wide-ranging interview on CNBC, Huang stated that what differentiates today's environment from the dot-com era is the depth of demand: global hyperscale cloud firms already manage more than $2.5 trillion in business, he argued, and are backing AI models that are proving economically viable. He contrasted past speculative cycles with the current surge, which he sees rooted in real commercial use.

Huang acknowledged that Nvidia is backing Elon Musk's xAI and expressed regret that the company did not invest more aggressively earlier, but he pushed back on the notion of circular financing-where Nvidia would fund startups that then purchase its GPU chips. He dismissed that critique, saying that the financing rests on genuine opportunity rather than self-referential loops.

His confident posture arrives amid sharper warnings from financial institutions. The International Monetary Fund and the Bank of England issued alerts that equity valuations tied to AI may be vulnerable to abrupt reversals. IMF Managing Director Kristalina Georgieva compared current exuberance to the dot-com period, cautioning that investor sentiment around AI productivity gains“could turn abruptly.” The Bank of England noted U. S. tech firms make up a disproportionate share of market indices, heightening exposure to downside swings.

Some market voices have pushed further. Analysts at MacroStrategy Partnership estimated the AI“bubble” at 17 times the scale of the dot-com frenzy and four times that of the subprime crisis, arguing capital is being misallocated on expectations rather than tangible returns. Others, including Goldman Sachs' CEO David Solomon, have predicted a“drawdown” in markets over the coming 12 to 24 months should AI hype overshoot deliverables.

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Inside the technology sector, concern lingers over how much of the heavy AI investment has actually translated into delivery. Tech investor Brad Gerstner recently warned that deals between OpenAI and chipmakers like Nvidia or AMD remain“pure announcements,” with few details on deployment or integration. Meanwhile, OpenAI's President Greg Brockman called out compute scarcity and projected that sustaining AI workflows will ultimately require tens of billions of GPUs-a long horizon for supply chains to meet.

Huang also addressed geopolitical and competitive tensions. He remarked that the United States is“not far ahead” of China in AI development, emphasizing the necessity of open global competition. NVIDIA's resumption of regulated AI chip exports to China illustrates that balance between restrictions and market access remains delicate.

On the infrastructure front, Huang reiterated Nvidia's bullish forecasts: he projects the AI build-out over the coming years could total up to $3–4 trillion. That projection is tied to hyperscalers, data centre operators and enterprises with massive compute demands. He cited sustained demand for both current-generation Hopper chips and the new Blackwell line as evidence that momentum remains strong.

Yet his optimism does not go unchallenged. Academic research warns of valuation misalignment in AI firms' pricing, introducing the notion of a“Capability Realization Rate” to measure the gap between potential and realised performance. Some argue that until AI ecosystems deliver reliable, scalable returns, parts of the market remain exposed to speculative corrections.

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