Jensen Huang - AI Demand Is About to Explode

AI, always in focus, and video wrapping up its GTC conference today in Berlin. CNBC's Arjun Kharpal spoke with CEO Jensen Huang at the event, and Arjun joins us live. Arjun.

And David, it's been Jensen-mania over here in Berlin, and a great time, of course, to catch up with the Nvidia CEO given some of the concerns around this AI trade in pockets of this market. One of those, of course, being the neoclouds, led by concerns over CoreWeave, some of the debt financing we've seen there, and a number of quite bearish stories around some of these neoclouds. Now, of course, Nvidia is an investor in many of these neoclouds, from Nebius all the way through to Enscape and CoreWeave as well, and they are buying up billions of dollars worth of these Nvidia GPUs. So I asked Jensen Huang, is there actually a fundamental problem with the business models of these neoclouds? Let's listen in to what he had to say.

Jensen's view there, really, it's not an issue about demand or the business model itself, but access to working capital as well. And of course, as I mentioned, Nvidia backer of many of these neoclouds. Another big concern in the market, of course, is over some of the memory stocks, the likes of Micron and Samsung and SK Hynix, and whether there is actually potentially an oversupply. This was a conversation that was sparked a few days ago by a prominent South Korean business paper who suggested that there could be oversupply of memory in 2029. It was a question, of course, given that Nvidia is a big buyer of memory and of high-bandwidth memory in particular as well. I asked Jensen Huang whether a 2029 oversupply scenario is likely. Let's listen to what he had to say.

So no signs of memory oversupply there, according to Jensen Huang. He goes, there's lots of memory that is going to be needed in the future. We spoke through so many topics, all the way from his views on safety through to the China market and whether that is still open to the company as well.

Jensen, we're obviously in this environment where the cost of capital has increased, and as a result, investors are increasingly scrutinizing the business models, the balance sheets of the neoclouds. And clearly that is creating some headwinds, whether it's Fermosa or CoreWeave or NextDC. You've backed a lot of these companies financially, rhetorically, financially. So my question is, how far is Nvidia prepared to go to back neoclouds? How much further could you go in extending your balance sheet to support those companies? Would you ever, if it came to it, bail out one of these companies, or is it time for neoclouds to stand on their own two feet?