Jensen Huang: The chip industry will not face a recession for some time, and its scale needs to expand five to ten times.

NVIDIA CEO Jensen Huang and Axios co-founder Mike Allen held an extensive, in-depth discussion on the current state of artificial intelligence. Huang noted that despite the long-standing boom-and-bust cycles in the chip industry, "this time it’s different." Even when accounting for the sector’s historically extreme cyclical fluctuations, the current boom still has room to grow. When asked if the industry is on the verge of a downturn, Huang responded: "No, that won’t happen for a while. This time it’s different because this isn’t demand-driven. For a long time, consumer demand has been the main driver of this industry. But the current AI boom is industry-driven, meaning core computing technologies are undergoing transformation. We need to build an entirely new layer of infrastructure globally. We already have energy, the internet, roads, and railways; now we need to construct an AI 'intelligence layer'—an additional infrastructure layer built on top of these foundations. And this infrastructure layer relies on chips. I believe our semiconductor industry may need to be five to ten times larger than its current size... The industry’s current scale is far too small. All shortages stem not from cyclical issues or consumer demand, but from fundamental, infrastructure-related factors."