Nvidia looks to expand its AI reign with robots, personal supercomputers
The Santa Clara, California-based company is working on a successor to its current design, but that will be a stopgap product
[NEW YORK, SAN FRANCISCO] Nvidia, the chipmaker that’s become synonymous with the artificial intelligence (AI) boom, said it will help General Motors (GM) with driver-assistance technology and work with the telecom industry on new 6G networks.
Chief executive officer Jensen Huang announced the initiatives during a keynote speech at his company’s annual GTC expo in San Jose, California. The conference, once a little-known gathering of developers, has become a closely watched event since Nvidia took a central role in AI – with the tech world and Wall Street taking its cues from the presentation.
Huang said Nvidia was working with GM to use AI in next-generation cars, factories and robots. The wireless project, meanwhile, involves companies such as T-Mobile US and Cisco Systems. Nvidia will help create “AI-native” wireless network hardware for new 6G networks, the successor to today’s 5G.
It’s a pivotal moment for Nvidia. After two years of stratospheric growth for both its revenue and market value, investors in 2025 have begun to question whether the frenzy is sustainable. These concerns were brought into focus earlier this year when Chinese startup DeepSeek said it had developed a competitive AI model using a fraction of the resources.
DeepSeek’s claim spurred doubts over whether the pace of investment in AI computing infrastructure was warranted. But it was followed by commitments by Nvidia’s biggest customers, a group that includes Microsoft and Amazon.com’s AWS, to keep spending this year.
The biggest data centre operators – a group known as hyperscalers – are projected to spend US$371 billion on AI facilities and computing resources in 2025, a 44 per cent increase from the year prior, according to a Bloomberg Intelligence report published on Monday. That amount is set to climb to US$525 billion by 2032, growing at a faster clip than analysts expected before the viral success of DeepSeek.
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But broader concerns about trade wars and a possible recession have weighed on Nvidia’s stock, which is down 13 per cent this year. The shares fell 2.8 per cent to US$116.20 in New York trading on Tuesday.
The GM news hurt shares of Mobileye Global, which develops self-driving technology. The stock fell as much as 6.7 per cent to US$13.96. The company, majority-owned by Intel, had its initial public offering in 2022.
The weeklong GTC event, which has taken over downtown San Jose, is a chance to convince the tech industry that Nvidia’s chips are still must-haves for AI – a field that Huang expects to spread to more of the economy in what he’s called a new industrial revolution. Huang noted that the event has been described as the “Super Bowl of AI”.
The most important issue Huang can address is whether AI capital spending will continue to climb in 2026, Wolfe Research analyst Chris Caso said in a note previewing the event. “AI stocks have been down sharply on recession fears, and while we think AI spending is the last place cloud customers would wish to trim budgets, if the areas that fund those budgets suffer, that could put some pressure on capex.”
The company’s current top-of-the-line chip range is based on a design called Blackwell. Some early versions of that processor required fixes, delaying the release. Nvidia has said that those challenges are behind it, but the company still does not have enough supply to meet demand. It has increased spending to get more of the chips out the door, something that will weigh on margins this year.
Huang said the top four public cloud vendors – Amazon, Microsoft, Alphabet’s Google, and Oracle – bought 1.3 million of Nvidia’s older-generation Hopper AI chips last year. So far in 2025, the same group has bought 3.6 million Blackwell AI chips, he said.
The Santa Clara, California-based company is working on a successor to its current design, but that will be a stopgap product. The next big move forward is a design due later that’s code-named Vera Rubin. BLOOMBERG
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