In an interview, NVIDIA CEO Jensen Huang stated that the increasing capital expenditures in AI infrastructure by the tech industry are reasonable, appropriate, and sustainable, as company cash flows will grow accordingly. Tech giants like Microsoft plan to invest over $600 billion in capital expenditures by 2026. He emphasized that a 'largest-scale infrastructure construction in human history' is currently underway, driven by an 'extremely strong' demand for computing power, which will enable AI companies and hyperscale cloud service providers to generate more revenue.
