Nvidia CEO Jensen Huang to Defend AI Dominance Amid Rising Competition

Nvidia’s AI Empire: Can It Hold the Crown Amid Rising Competition?

When Nvidia CEO Jensen Huang takes the stage at the company’s annual software developer conference this week, he won’t just be unveiling new technology—he’ll be defending Nvidia’s dominance in the AI industry. As the company nears a $3 trillion valuation, mounting competition and cost concerns from its biggest customers are putting pressure on the chipmaker’s reign.

A Shifting AI Landscape

Nvidia’s success has been fueled by its high-performance AI chips, which cost tens of thousands of dollars each and have helped quadruple the company’s revenue to $130.5 billion in just three years. However, recent developments—like China’s DeepSeek unveiling an AI chatbot that requires less computing power—have rattled investors, sending Nvidia’s stock tumbling.

At the conference, Huang is expected to introduce Vera Rubin, Nvidia’s latest AI chip system, set for mass production later this year. However, supply chain delays have already slowed the rollout of its predecessor, David Blackwell, impacting margins and leaving room for competitors to gain ground.

The Battle for AI Inference

Nvidia dominates AI training, the process of feeding large datasets into models to make them smarter, controlling over 90% of that market. But the shift toward inference—where AI models generate real-time responses—is opening the door for challengers like AMD and dozens of AI chip startups.

“Inference computing is going to be a much bigger market than training,” said Jay Goldberg, CEO of D2D Advisory. “Nvidia’s share may shrink, but the overall revenue potential is massive.”

Unlike training, inference can be done on smaller, more efficient chips—some of which consume significantly less power than Nvidia’s energy-hungry GPUs. This has led AI companies to explore alternative solutions, including nuclear power, to sustain operations.

Nvidia’s Next AI Play: Reasoning AI

Despite the competition, Nvidia believes its chips will remain essential as AI evolves. A new wave of “reasoning AI” models—designed to generate more complex and thoughtful responses—requires significantly more computing power.

“The AI models of tomorrow won’t just process data; they’ll think, iterate, and refine their answers,” Huang has previously stated. This could give Nvidia an edge, as its hardware is built to handle these more demanding workloads.

Beyond AI Chips: Nvidia’s Expanding Vision

While AI hardware remains Nvidia’s core business, the company is venturing into other areas, including quantum computing and personal computing chips.

At the conference, Nvidia will dedicate an entire day to quantum computing, following Huang’s controversial January comments that the technology is still decades away—remarks that sent quantum startups’ stock prices plummeting. Meanwhile, Nvidia’s upcoming PC processor, first reported by Reuters, is expected to challenge Intel’s long-held dominance in the consumer computing market.

“It could eat into what’s left of the Intel market,” noted tech analyst Maribel Lopez.

What’s Next for Nvidia?

As Huang takes the stage, all eyes will be on how Nvidia plans to defend its AI empire. Can the company maintain its grip on the rapidly evolving industry, or will challengers chip away at its lead? With new competition, shifting AI trends, and growing customer demands for efficiency, the battle for AI supremacy is far from over.

source: https://www.reuters.com/technology/nvidia-ceo-defend-ai-dominance-competition-intensifies-2025-03-17/