Nvidia CEO Jensen Huang has sought to reassure investors that the staggering capital expenditure by Big Tech companies on AI infrastructure are not a bubble about to burst, but the beginning of a new era of computing. As reported by Fortune, during thencompany’s Q4 earnings call, Huang addressed the concerns about hyperscalers like Microsoft, Meta, Google and Amazon which are budgeting together nearly $700 billion in apex this year to build massive AI data centers. Meta alone plans to spend up to $135 billion, while Google has raised its apex to $185 billon from $91 billion last year.

“This new way of computing is not going back,” says Nvidia CEO Jensen Huan

Huang dismissed fears that such three-digit billion-dollar spending figures are unsustainable. “If you think about it and said ‘OK, well the world was investing about $300 to $400 billion a year in classical computing, and now AI is here and the amount of necessary computation is 1,000 times higher… if we continue to believe there’s value in it, then the world will invest to produce that token,’” he explained, referring to the basic unit of data processed by AI models.He added: “So the amount of token generation capability that the world needs is a lot more than $700 billion. And I’m fairly confident that we’re going to continue to generate tokens, we’re going to continue to invest in compute capacity from this point out.”

Nvidia’s blockbuster Q4 results has some lingering concerns

Nvidia has reported the Q4 revenue of $68.1 billion, up to 73% year-over-year, with sales projected to expand by as much as 200% in the current quarter. Yet its stock rose less than 1% after the results, reflecting investors unease about whether hyperscalers spending can continue at this pace. More than half of Nvidia’s revenue comes from these five hyperscalers, who are already outspending their free cash flow and raising debt to finance AI infrastructure. Analysts pressed Huang on whether other customers could sustain demand if hyperscaler spending slows.

The next wave is Agentic and physical AI

Huang pointed to emerging applications as proof of lasting demand. He highlighted the rise of agentic AI, tools like OpenClaw that act autonomously, saying the inflection point “literally happened in the last 2 or 3 months.” He predicted the next frontier will be physical AI, as models are integrated into robotics and manufacturing equipment.“AI is here. AI is not going to go back. AI is only going to get better from here,” Huang said, signaling that Nvidia sees the hyperscaler spending spree not as a nightmare, but as the foundation of a long-term transformation.