Nvidia CEO Jensen Huang has projected AI related capital expenditures to surpass even the most optimistic forecasts, signaling a potential surge in industry investment.
During Wednesday’s earnings call, Huang estimated that AI infrastructure spending by hyperscalers such as Alphabet and Amazon could reach up to $4 trillion.
“The capex is at a trillion dollars, and it’s growing toward the three to four trillion dollar mark,” emphasising that this figure pertains specifically to hyperscale data centers, excluding other segments like neoclouds.
Nvidia’s CFO Colette Kress provided additional insights, noting that analysts now anticipate hyperscale capital expenditures to exceed $1 trillion by 2027.
She further highlighted that with the proliferation of agentic AI across various industries, AI infrastructure spending is projected to hit between $3 and $4 trillion annually by the end of the decade.
Source (CNBC)
