Nvidia CEO Huang Says AI Cloud Growth Is Capped by Capital, Not Demand

Nvidia CEO Jensen Huang said demand for AI cloud services is "extremely strong," but the industry's expansion is constrained by insufficient working capital rather than customer demand, with funding needs far outstripping what markets can supply. He spoke to CNBC on the sidelines of Nvidia's GTC conference in Berlin. Neocloud operators buy GPUs at scale and lease computing capacity for AI training and inference. Huang said funding shortfalls are the main obstacle to building data centers and purchasing chips, though he did not detail how the gap would be closed. Capital concerns have drawn scrutiny to CoreWeave (CRWV), which has accumulated $35.6 billion in debt. Its shares have fallen about 50% over six months and slipped roughly 4% premarket around Huang's remarks, while Nvidia (NVDA) fell about 2%. Nvidia holds roughly 10% stakes in CoreWeave and Nebius (NBIS) and invested $2 billion in CoreWeave in January.