Nvidia’s Jensen Huang casts AI as the backbone of a once-in-a-generation infrastructure boom

Nvidia chief executive Jensen Huang has described artificial intelligence as the foundation of what he called “the largest infrastructure buildout in human history”, arguing that governments should treat AI as a core public asset rather than a niche technology.

Speaking at the World Economic Forum in Davos, Huang said AI should be understood as a “five-layer cake”, stretching from physical energy supply through to consumer-facing applications. Each layer, he argued, must be built and operated at scale, creating demand for skilled labour across a wide range of industries.

At the base of Huang’s model sits energy, followed by chips and computing infrastructure, cloud data centres, AI models and, finally, the application layer where AI-powered products and services are delivered to users. “This layer on top, ultimately, is where economic benefit will happen,” he said, referring to applications built on top of the underlying infrastructure.

For a lay audience, the point is that AI is not just software. Large models require vast amounts of electricity, specialised chips, buildings to house servers and teams to run them. Only once those foundations are in place can companies build the tools people interact with, from healthcare systems to business software.

Huang said the scale of this buildout would translate directly into jobs. He listed plumbers, electricians, construction workers, steelworkers and network technicians among those likely to benefit, alongside roles in advanced manufacturing, cloud operations and software development. “Every layer must be built and operated,” he said, emphasising that AI investment would ripple through the wider economy.

He used healthcare to illustrate how AI could change work rather than eliminate it. Citing radiology, Huang said that despite advances in AI image analysis, the number of radiologists has increased rather than fallen. He also pointed to nursing, noting that the US faces a shortage of roughly five million nurses.

“AI can reduce time spent on charting,” he said, referring to administrative paperwork. By cutting that burden, Huang argued, hospitals can operate more efficiently and hire more staff. “Hospitals do better, and they hire more nurses,” he said.

Huang also highlighted the flow of capital into the sector. He said 2025 marked the largest year on record for global venture capital investment, with more than $100bn deployed worldwide. According to Huang, most of that funding is flowing into “AI-native companies” focused on the application layer, where AI is built directly into products and services rather than added as an afterthought.

That investment pattern, he argued, reinforces the idea that AI should be viewed as infrastructure. “AI is infrastructure,” Huang said. “You should have AI as part of your infrastructure.” He urged countries to develop national AI capabilities, warning that reliance on external providers could become a strategic risk.

The argument resonates with governments increasingly concerned about energy security, supply chains and digital sovereignty. Large-scale AI systems depend on stable power, resilient networks and access to advanced chips, all areas where geopolitical tensions have intensified.

Huang’s comments also drew support from investors. Jacob Fink said the scale and longevity of the buildout could make AI an attractive asset class for long-term capital. “I actually believe it’s going to be a great investment for pension funds around the world to be a part of that, to grow with this AI world,” he said.

The framing of AI as infrastructure marks a shift from earlier narratives focused on disruption and job loss. Instead, Huang presented AI as a capital-intensive, labour-absorbing project more akin to railways, electricity grids or the internet.

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Whether that vision holds will depend on how evenly the benefits are distributed and how quickly supporting infrastructure can be built. Energy constraints, planning delays and skills shortages could slow progress. There are also open questions about who pays, and how much public investment will be required alongside private capital.

Still, Huang’s message at Davos was clear. AI, in his view, is no longer just a technology sector story. It is an industrial one, with implications for employment, investment and national strategy. If he is right, the race to build AI will look less like a software upgrade and more like a global construction project, reshaping economies from the ground up.

The Recap

• Jensen Huang outlined AI as a five-layer infrastructure stack.
• 2025 saw more than $100 billion in VC investment.
• He urged countries to develop national AI capabilities and infrastructure.