Nvidia CEO Dismisses AI Threat Amid Software Stock Selloff

Huang Counters AI Fears as Software Stocks Plunge

Nvidia CEO Jensen Huang dismissed concerns that artificial intelligence will render software tools obsolete, labeling the idea "illogical" following a significant global selloff in software stocks. The downturn was triggered by fears of AI-driven disruption in the professional services industry.

Global Market Reaction

The selloff, sparked by AI developer Anthropic's updated chatbot, broadened across Asia. India's IT exporters slumped 6.3%, with Infosys falling 7.3%. China’s CSI Software Services Index fell 3%, while Hong Kong's Kingdee International Software Group tumbled over 13%. In Japan, Recruit Holdings and Nomura Research dropped 9% and 8%, respectively.

The Future of AI and Software Tools

Speaking at an AI conference, Huang asserted that AI will rely on existing software rather than rebuild basic tools from scratch. He stated that the latest breakthroughs in AI focus on "tool use," reinforcing the continued relevance of the software industry.

Summary

Huang’s statements provide a counter-narrative to market fears, suggesting a synergistic future for AI and software. However, the widespread stock selloff indicates that investor sentiment remains cautious about the disruptive potential of advanced AI.

FAQ

Q: Why did software stocks fall?
A: Stocks fell due to fears that new AI developments, like Anthropic's updated chatbot, could disrupt and replace existing software and professional services.

Q: What is Jensen Huang's perspective?
A: He believes AI will use existing software tools, not replace them, arguing that this makes the software industry more vital, not obsolete.

Source: Investing.com