Nvidia CEO: AI Spending Isn't Bubble, It's 'Doubling, Doubling, Doubling

$660 billion. That's how much Meta, Amazon, Google, and Microsoft could spend on AI infrastructure this year—with much of it flowing straight into Nvidia's coffers. As Wall Street questions whether this spending spree is sustainable, CEO Jensen Huang has a simple message: not only is it justified, it's just getting started.

"The reason for that is because all of these companies' cash flows are going to start rising," Huang told CNBC's "Halftime Report" on Friday. His confidence sent Nvidia shares soaring 7% during trading, adding billions to the chipmaker's already astronomical valuation.

The Mixed Verdict from Wall Street

The market's reaction to Big Tech's AI spending announcements over the past two weeks tells a nuanced story. While Meta and Alphabet saw their stocks climb after revealing massive AI investment plans, Amazon and Microsoft faced punishment from investors despite similar commitments.

This split reaction reveals something crucial: investors aren't just looking at spending levels—they're scrutinizing the path to profitability. Huang seems to understand this calculus perfectly. "To the extent that people continue to pay for the AI and the AI companies are able to generate a profit from that, they're going to keep on doubling, doubling, doubling, doubling," he said.

The 'Largest Infrastructure Buildout in Human History'

Huang framed the current moment as the "largest infrastructure buildout in human history," driven by what he called "sky high" demand for computing power. But he wasn't content with grand statements—he got specific about how companies are actually monetizing their AI investments.

Meta is transitioning from CPU-based recommendation systems to generative AI and agent-powered platforms. Amazon Web Services plans to revolutionize product recommendations using Nvidia-powered AI. Microsoft is integrating AI capabilities across its enterprise software suite.

Perhaps most telling were his comments about OpenAI and Anthropic, the leading AI labs that rely on Nvidia chips through cloud providers. "Anthropic is making great money. OpenAI is making great money," Huang said. "If they could have twice as much compute, the revenues would go up four times as much."

Even Six-Year-Old Chips Are Gold

One of Huang's most revealing comments concerned the utilization of older hardware. Even six-year-old chips like the A100 are currently being rented out, he said—a sign that AI demand isn't just about having the latest and greatest technology, but about accessing any available computing power.

This sustained demand across generations of hardware suggests we're witnessing structural change rather than speculative frenzy. Nvidia has backed this belief with its wallet, investing $10 billion in Anthropic last year and committing to participate heavily in OpenAI's next funding round.