NVIDIA CEO Jensen Huang speaks during the Live Keynote Pregame during the Nvidia GTC (GPU Technology Conference) in Washington, DC, on Oct. 28, 2025.
Nvidia CEO Jensen Huang said on Friday that artificial intelligence had reached a "virtuous cycle," tipping the industry for continuous growth.
Speaking at the APEC CEO Summit in South Korea, Huang said the vast improvements in AI models were leading to more investment in the technology, which was, in turn, improving the AI models even further.
"We have now achieved what is called the virtual cycle," he said on stage at the event, wearing a suit rather than his usual black leather jacket.
"The AIs get better. More people use it. More people use it, it makes more profit, creates more factories, which allows us to create even better AIs, which allows more people to use it. The virtual cycle of AI has been designed, and this is ... the reason why you're seeing the world's capex going so fast."
His comments come as Big Tech is spending billions to build out AI-related infrastructure and serve its end users.
This year was expected to be a big one for AI spend with Meta, Amazon, Alphabet and Microsoft announcing plans to spend over $300 billion combined on AI technologies and datacenter buildouts. This looks set to continue into 2026 as the tech giants plan to boost spending again, per their respective earnings, reported this week.
Dan Ives, Wedbush Securities global head of technology research, described Nvidia as "the foundation of the AI Revolution" in comments to CNBC after Huang's comments on stage.
He described the AI virtuous cycle as: "The more demand, the more building of AI building blocks. And demand creates more demand and capex."