Why Nvidia CEO Thinks the AI Boom Is a “Self-Funding Loop” of Improvement and Investment
AI isn’t just getting smarter. It is making money, spending that money to get better, and repeating the process. That is the cycle Nvidia CEO Jensen Huang calls a “self-funding loop.” In his words, “The AIs get better. More people use it. More people use it, it makes more profit, creates more factories, which allows us to create even better AIs.” It is a clean, simple loop, and it is working fast.
Huang believes we have entered a new era. This isn’t just about software anymore. AI is changing hardware, reshaping businesses, and building what he calls a “new industrial revolution.” And it is all happening because AI is now profitable, and profit drives progress.
The Cycle That Feeds Itself
The key to this loop is profit. If something generates revenue, companies will invest more to develop it. Think about a factory. If one factory prints cash, you build ten more. Same with AI. As the tools improve, more people adopt them. That drives up revenue, which then gets reinvested into better models, more chips, and more servers.
Maria / Unsplash / Nvidia’s own numbers back this up. Right before Huang’s statement, the company hit a staggering $5 trillion market value. That puts it in rare company.
Each round of improvement makes the next round easier and faster. AI doesn’t hit a wall, it hits a ramp. And as long as people continue to use it, the system keeps spinning. Huang says that is the big shift.
$300 Billion Says He Is Right
This is already showing up in tech budgets. Meta, Amazon, Microsoft, and Alphabet are planning to drop over $300 billion into AI and data centers by the end of 2025.
Why? Because Nvidia sells the chips that power AI. Their GPUs are the brains behind the smartest systems in the world. Wedbush analyst Dan Ives didn’t sugarcoat it. He called Nvidia “the foundation of the AI revolution.”
A New Stack for a New Era
Huang isn’t just hyping GPUs. He says the entire computing stack, including software, hardware, and systems, is being rebuilt from the ground up. For the first time in decades, every layer of tech is changing. At the center of this shift is AI.
We are talking about a total system reset. The old CPU-based world is fading. A trillion dollars’ worth of infrastructure will need to be updated, replaced, or removed. Huang says this is a 10-year global build-out.
Eng / Pexels / Huang says AI won’t just help humans work faster. It will start doing the work on its own. Not just recommending edits or organizing files, but designing, writing, coding, building, and testing.
He calls it “AI as a worker.” And that shift, he says, will transform $100 trillion worth of industries.
AI agents are writing code, drafting legal memos, testing hardware, and designing drugs. They are still clumsy, sure, but they are learning fast. And every time they improve, the loop kicks in again with better tools, increased usage, and more investment, leading to even better tools.
However, some might look at these numbers and wonder if it is all hype. Huang sees it differently. He sees a repeat of the early internet or mobile eras, when capital spending surged and skeptics scoffed. The difference now? AI is already delivering returns. It is not burning money. It is multiplying it.