Catenaa, Friday, February 06, 2026- Nvidia Chief Executive Officer Jensen Huang said that the level of expenditures is appropriate and sustainable on data centers, as concerns mount that customers are overspending on AI.
The build-out of artificial intelligence infrastructure will continue for seven to eight years, Huang told CNBC on Friday, saying that demand for AI is “just incredibly high.”
“AI has become useful and very capable,” Huang said. “The adoption of it has become incredibly high.”
Heavy capital spending by many of the world’s biggest tech companies, including Amazon, Alphabet’s Google, Meta Platforms, and Microsoft, has alarmed investors in the wake of earnings reports.
The market value of those four businesses has declined by close to $1 trillion in total during recent days.
Much of that spending will flow to Nvidia, which makes data center processors that help develop and run AI models.
Huang argues that artificial intelligence is already paying off for its adopters, and those customers would be doing even better if they had more data centers.
Nvidia’s co-founder said he’s not worried that the technology industry will add too much capacity. Unlike with the first build-out of the internet, there’s no infrastructure sitting idle. Companies like Anthropic PBC and OpenAI are generating profitable revenue, he said.
