Jensen Huang is betting on cybersecurity as the next use case for AI, and frankly admits that "creating problems" is creating demand.
At the Goldman Sachs Technology Conference, Nvidia CEO Jensen Huang identified cybersecurity as the next major use case for AI, pointing out that AI's automation of computer programming is fundamentally changing the pace of cyber attack and defense.
On Thursday, at the Goldman Sachs Technology Conference in San Francisco, Jensen Huang told the audience:
Cybersecurity is likely to become the next major use case for AI.
He explained that the automation of computer programming by AI models is disrupting the cybersecurity industry because code can be exploited and patched very quickly.
Nvidia just gave a strong long-term sales forecast last month, leading Wall Street to believe that massive spending on AI data centers will continue. However, the market continues to demand that the company prove these capital expenditures are generating real economic benefits. Jensen Huang's focus on cybersecurity at this time is tantamount to finding a new high-value application outlet for AI computing power.
Meanwhile, Nvidia's continued active acquisition activities have also attracted market attention. Last week, the company announced that it would acquire AI startup Hugging Face for approximately $13 billion, further expanding its footprint in the AI industry chain.
At the summit, Jensen Huang directly addressed external concerns about the cyclical nature of mergers and acquisitions, emphasizing that Nvidia's investment decisions are based on a deep understanding of real needs.
AI accelerates programming automation, posing a structural challenge to cybersecurity.
At the summit, Jensen Huang explained the inherent logic between AI and cybersecurity: as AI significantly lowers the barrier to entry for coding, the amount of exploitable code and the number of vulnerabilities requiring rapid response and patching are also surging, which is fundamentally changing the supply and demand structure of the entire cybersecurity industry.
He said:
What creates demand better than creating problems? What company doesn't want its market to be scrambling for its products, with people lining up to buy them? There are responsible ways to do this, and less commendable ways.
This statement comes after Nvidia released a better-than-expected long-term earnings outlook last month. That outlook solidified Wall Street's confidence that AI data center spending will continue to expand and further reinforced market expectations that Nvidia will continue to benefit from this trend.
In response to concerns that the flurry of investment and acquisitions might distort the market, Huang explicitly denied any cyclical problems involved. He said:
This isn't a cycle, because we invest a little money and get a lot back. People are starting to realize that wherever I invest, it's not a bad investment, because I'm a professional investor and I don't take any risks.
Jensen Huang stated that Nvidia needs to see "sure-fire" opportunities before making an investment. He defined this standard as: potential investment targets must already have customers waiting in line.
Risk Warning and DisclaimerInvesting involves risk; please exercise caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Any investment decisions made based on this information are at your own risk.