Why will the next generation of software companies be capital-expenditure heavy?
Replied byJensen Huang
Co-founder & CEO at NVIDIA
Niche: Technology
Revenue: $1M+/month
Location: Santa Clara, California, United States
Started: 1993
Traditional software was capital-expenditure light because code was written by humans. AI software requires massive computing clusters to manufacture tokens and process reasoning. Generating intelligence requires building physical data centers and investing in hardware.
0
From the Full Interview
This answer is part of a full interview with Jensen Huang, Co-founder & CEO at NVIDIA.
Share this Answer
Found this insight valuable? Share it with your network to help others learn from Jensen Huang's experience.
Cite This Answer
Use this answer in your research, article, or academic work
Related Answers
How will AI change companies over the next few years?
By Fabricio Bloisi
Technology
$1M+/mo
Do you think software engineers will stop writing code?
By Jeetu Patel
Technology
Approximately $4.5 Billion USD/mo
What skills will become most important in the iGaming industry over the next few years?
By Chris Lou
Technology
/mo
Is there a security risk in American companies using Chinese open-source models?
By Jensen Huang
Technology
$1M+/mo
Why should companies avoid building their own custom AI models from scratch?
By Jensen Huang
Technology
$1M+/mo
Why do you reject the narrative that AI will cause massive job losses?
By Jensen Huang
Technology
$1M+/mo
Why do you believe that a market bubble is unlikely in the next five years?
By Jensen Huang
Technology
$1M+/mo