Nvidia CEO Jensen Huang declared that artificial intelligence has entered a "virtuous cycle" during a keynote address at the APEC CEO Summit in South Korea, marking a pivotal moment for the tech industry. Speaking in a suit rather than his customary black leather jacket, Huang explained that advancements in AI are now fueling greater investment, which in turn drives further improvements in AI capabilities. “We have now achieved what is called the virtuous cycle,” Huang said. “The AIs get better. More people use them. More usage generates more profit, which funds more factories and infrastructure, enabling even better AIs. That cycle is now in motion—and this is why you’re seeing global capital expenditure surge.” His remarks come amid massive investments by Big Tech companies to expand AI infrastructure. Meta, Amazon, Alphabet, and Microsoft collectively plan to spend over $300 billion this year on AI technologies and datacenter expansions. These investments are expected to continue through 2026, according to recent earnings reports. Dan Ives, global head of technology research at Wedbush Securities, echoed Huang’s sentiment, calling Nvidia “the foundation of the AI Revolution.” He described the cycle as self-reinforcing: rising demand for AI leads to more construction of AI infrastructure, which in turn fuels even greater demand and capital spending. Huang emphasized that this represents the dawn of a new era in computing. Unlike traditional computing, which has remained largely unchanged for six decades, AI is transforming every layer of the computing stack—from hardware and software to energy use, chip design, and system architecture. “AI runs on GPUs, while hand-coded software runs on CPUs,” Huang noted. “Now, every single layer of computing is being fundamentally reimagined. The entire industry—billions of dollars’ worth of existing computers—must now transition to this new AI-driven platform.” The shift is already underway. Earlier on Friday, Nvidia announced a major partnership with Samsung, the South Korean semiconductor giant, which will purchase and deploy a cluster of 50,000 Nvidia GPUs. The goal is to enhance Samsung’s chip manufacturing for mobile devices and robotics, underscoring the growing role of AI in industrial innovation. Huang also offered a vision of the future in which AI doesn’t just assist but actively “works” on its own. He pointed to the rise of fully automated manufacturing plants, where AI systems manage entire production lines without human intervention. He believes this transformation will reshape industries worth an estimated $100 trillion globally. With Nvidia becoming the first company to surpass $5 trillion in market value earlier that week, Huang’s message reinforced the company’s central role in driving the next phase of technological evolution.