Nvidia CEO defends AI cloud sector amid coreweave's financial struggles

Nvidia CEO Jensen Huang defended the AI cloud sector, stating demand for neocloud infrastructure is 'off the charts,' despite growing investor concerns over the industry's debt-driven expansion. Huang, speaking on CNBC's 'Morning Call,' dismissed worries about the business models of neocloud companies, emphasizing their extraordinary capabilities. His remarks came as CoreWeave, a major publicly traded neocloud, faced financial scrutiny, with its stock down 50% over six months and HSBC predicting a further 35% drop. CoreWeave, which took on $35.6 billion in debt by June, has become a focal point of concerns about the AI industry's financial risks. Huang highlighted the scarcity of capital amid high demand across AI sectors, arguing that Nvidia is working to position its computing hardware as a financeable asset. He also praised CoreWeave, stating its 'strength is improving every day' and that its cost of capital is decreasing.