- Nvidia reported $96.2 billion in quarterly revenue for fiscal 2027 second quarter, more than double the year-earlier figure, with data centre revenue up 117 per cent to $89 billion.
- Nvidia CEO Jensen Huang rejected AI bubble claims, saying critics are missing a very big point, in an interview with CNBC's Mad Money after Nvidia reported better-than-expected quarterly results.
- Huang highlighted the unprecedented scale of AI startups, noting that it never used to require billions of dollars to get off the ground, but that is the nature of AI.
- Nvidia has committed $105 billion towards a major computing campus in Ohio, where OpenAI is expected to be the primary tenant, and has partnered with Wall Street firms to arrange up to $500 billion in financing for data centres.
- Critics have described some of these arrangements as circular financing, but Huang rejected that interpretation, arguing that frontier AI companies require a different type of financial and strategic partner due to the scale of investment.
- Huang noted that many AI companies cannot raise funds through conventional borrowing because they lack the financial track record and investment-grade status needed for cheaper capital.
- Huang argued that the computing infrastructure built with Nvidia technology is not dependent on a single customer, as it can be redeployed for other customers and workloads if one customer faces financial difficulties.
- Huang expressed confidence that Nvidia's investments will generate strong returns and characterized the overall risk to the company as low.
Nvidia CEO Jensen Huang has firmly rejected claims of an AI bubble, stating that critics are missing crucial points about the industry's financial landscape. In a recent interview with CNBC, Huang emphasized the unique funding needs of AI startups, which often require billions to launch.238910
Nvidia is committing $105 billion to a new computing campus in Ohio, expected to house OpenAI as a primary tenant. Additionally, the company is partnering with major Wall Street firms to secure $500 billion in financing for data centers, a move Huang believes is essential for the growth of frontier AI companies.45
Huang noted, “When was the last time anybody heard of a startup that needed billions of dollars to get off the ground? That just never happened. But that’s really the nature of AI,” highlighting the scale of investment required in this sector. He also addressed concerns about “circular financing,” where companies fund customers who then purchase from them, arguing that AI firms need different financial partners due to their unique challenges.67
Despite investor skepticism regarding the sustainability of the AI investment boom, Nvidia reported $96.2 billion in quarterly revenue for fiscal 2027, more than double from the previous year, with data center revenue soaring 117 percent to $89 billion. Huang remains optimistic, forecasting 70 percent revenue growth for fiscal 2028 and asserting that the risk to Nvidia's investments is low.1
“Nvidia's quarterly revenue hit $96.2 billion, more than double year-earlier, with data centre revenue up 117% to $89 billion. Huang argued that AI startups now need billions to launch, and that infrastructure can be redeployed if a customer fails.”
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