Nvidia CEO Jensen Huang told CNBC Thursday that demand for neocloud firms is “off the charts,” but scarce capital is holding back growth.
“If you look at the fundamentals, the demand for the neo clouds is off the charts,” Huang told CNBC’s Arjun Kharpal on the sidelines of the company’s GTC conference in Berlin on Thursday, adding that capabilities are “extraordinary.”
“What is missing in the middle is the working capital to fuel that growth… because there’s just so much demand across so many sectors of AI, there’s a scarcity of capital,” Huang said.
“The demand of the capital is much greater than the availability of the capital. That’s going to get solved,” he added.
Huang has been on a European media blitz this month as the chip giant looks to expand investments in the region’s AI sector. The company has committed nearly $10 billion towards companies, universities, and research institutions.
While visiting London last week, Nvidia announced a stake worth over $1 billion in five U.K. startups. The chip giant is also investing in various French startups.
“We’re trying to kickstart the AI economy in Europe,” Huang told CNBC. “Europe has a tremendous amount of technology, tremendous amount of industrial know-how, incredible science and technology, and it’s ready to engage and build the AI economy here.”
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