During an interview with CNBC, Nvidia CEO Jensen Huang emphasized the overwhelming demand for neocloud services, stating that it is 'off the charts.' However, he pointed out that the growth of these services is being constrained by a scarcity of working capital. Huang explained that while the demand for capital exceeds its availability, he believes this issue will eventually be resolved.
He also mentioned that power supply is a critical factor for the AI industry's expansion, particularly in Europe, where high electricity prices pose challenges. Huang stressed the importance of establishing infrastructure for neoclouds in Europe to support the development of a robust AI ecosystem.
Nvidia is actively investing in the European AI sector, committing nearly $10 billion to various companies, universities, and research institutions, including a recent $1 billion stake in five U.K. startups. Huang's efforts aim to stimulate the AI economy in Europe, leveraging the region's technological and industrial strengths