Nvidia Corp (NASDAQ:NVDA) CEO Jensen Huang’s warning about runaway AI demand has reignited debate over whether artificial intelligence is overheating or just getting started.
Nvidia CEO: AI Demand Is Growing Faster Than Chips Can Keep Up
Earlier this month, Huang said the AI industry is facing an unprecedented imbalance between supply and demand.
Speaking with CSIS President John J. Hamre, Huang explained that while Nvidia continues to improve computing performance by roughly an order of magnitude each year, demand for AI computing power is rising exponentially faster.
Huang said AI workloads are becoming more compute-intensive at the same time adoption is accelerating across industries, creating multiple overlapping growth curves.
Despite Nvidia’s efforts to push hardware innovation as quickly as possible, he said the industry faces a fundamental constraint: energy.
Futurum CEO Says That We’re Only ‘1% Into The AI Revolution’
Reacting to Huang’s comments, Futurum Group CEO Daniel Newman argued that claims of an AI bubble miss the bigger picture.
In a post on X, Newman said the world is still in the earliest phase of the AI transformation, estimating that the industry is “about 1% into the AI revolution.”
Newman pushed back on the idea that tools like OpenAI’s ChatGPT represent the peak of AI innovation, calling that view “insanely short sighted.”
He said the real challenge ahead is scaling the physical backbone of AI, including computing capacity, network connectivity, manufacturing and energy production.
AI Surge Drives 30% Global Power Demand Increase By 2035
In November, it was reported that global electricity demand is expected to jump about 30% by 2035, driven largely by the rapid expansion of data centers, according to an analysis from The Kobeissi Letter.
As AI adoption accelerates, data centers’ share of total power consumption is forecast to more than double, rising from roughly 1.5% today to about 3.5%.
The surge is reshaping the energy landscape, positioning power providers capable of delivering dependable, large-scale electricity as clear beneficiaries.
AI’s growing energy crunch is pushing tech leaders to consider unconventional fixes. Reports suggest OpenAI and Samsung Electronics Co. (OTC:SSNLF) are examining the use of floating data centers that would rely on seawater for cooling to ease power and heat constraints.
At the same time, Amazon.com, Inc. (NASDAQ:AMZN) founder Jeff Bezos and Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk have floated the idea of deploying data centers in space, where they could tap virtually unlimited solar energy.
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