Jensen Huang: neocloud demand is extremely high, but capital is insufficient

NVIDIA CEO Jensen Huang stated during an interview with CNBC reporter Arjun Kharpal at the GTC conference in Berlin on Thursday that the demand for neocloud is extremely high and its capabilities are extraordinary, but insufficient working capital is constraining growth. He mentioned that there is huge demand in multiple fields of artificial intelligence, and the capital demand far exceeds supply, a problem that will be resolved.

Jensen Huang indicated that electricity is the main constraint on the expansion of artificial intelligence, with higher electricity prices in Europe. He believes that allocating scarce energy to companies like Nebius and Mistral is crucial for their growth. Investment can enter Europe, but local infrastructure must first be in place; if European neocloud can establish infrastructure locally, the artificial intelligence ecosystem and economy can start and remain in Europe. He added that the entire Europe also needs more neocloud.

NVIDIA is conducting media activities in Europe this month and has committed nearly $10 billion in investments to local companies, universities, and research institutions. Jensen Huang announced last week during his visit to London that the company holds over $1 billion in shares in five UK startups and is also investing in several French startups. He stated that NVIDIA is trying to kickstart the artificial intelligence economy in Europe, which has a wealth of technology, industrial experience, and research capabilities, and is ready to participate in and build a local artificial intelligence economy.