Nvidia CEO Jensen Huang (File photo)

Pushing back on fears of AI cannibalizing the software industry, Nvidia CEO Jensen Huang said that the markets miscalculated the threat and that the markets “got it wrong”. Speaking in an interview with CNBC’s Becky Quick, Jensen Huang said investors have “got it wrong” by assuming AI agents will replace traditional enterprise software. Instead, he said AI agents will rely on existing software tools to get work done, making companies more productive rather than obsolete. His comments came just hours after Nvidia posted strong quarterly results and issued an upbeat revenue forecast, easing concerns about slowing AI demand but reigniting debate around the future of software firms.

Nvidia CEO Jensen Huang: AI agents will work with software, not replace it

Jensen Huang said AI agents are best understood as “tool users” rather than replacements for software platforms. He explained that tools such as internet browsers, spreadsheets like Microsoft Excel, and enterprise software from companies such as SAP, ServiceNow, Cadence, and Synopsys exist for solid reasons and will continue to be essential.

According to Huang, AI agents will act as intelligent layers that use these tools on behalf of users. They will help automate tasks, improve efficiency, and return information in ways people can easily understand. He said software companies themselves are likely to build specialized AI agents that work closely with their own platforms, rather than being displaced by outside systems.“Nobody’s going to service better than ServiceNow,” Huang said, adding that such companies are well placed to develop agents optimized for their own tools and workflows.

Nvidia CEO Jensen Huang on Anthropic vs Pentagon

Commenting on the ongoing feud between Claude-maker Anthropic and the US Defense Department, Jensen Huang said that both sides have valid positions. “The Defense Department has the right to use the technology and products they procure in a way that serves their interests. Likewise, Anthropic has the right to decide how they would like to market their products and what kind of use cases they could be used for,” he explained.Huang added that while he hopes the dispute is resolved, “if it doesn’t get worked out, it’s also not the end of the world,” noting that Anthropic is not the only AI company and the Pentagon is not the only customer.