“We’re pioneering a brand new industry,” Huang said, emphasizing that “computing is vital at every single layer.”
Huang characterized this ecosystem as a “five-layer cake,” where Nvidia is investing in and collaborating across all aspects of the AI value chain, extending beyond simply being a chip manufacturer.
Here’s how Huang elaborated on the five layers:
| Layer | What it means | Examples |
|---|---|---|
| Energy | The AI boom is fundamentally tied to energy, as data centers demand massive power. As global AI infrastructure expands, investments in electricity generation and energy resources must increase accordingly. | Energy infrastructure and power investment |
| Chips & hardware | Nvidia’s involvement now transcends its traditional GPU business, extending to networking, photonics, memory, and the large-scale computing architecture necessary for efficient AI system operation. Vera Rubin represents one of the most intricate computing systems ever developed. | Semiconductor chips, Silicon photonics, networking, copper scaling technologies |
| Infrastructure | This layer consists of firms constructing AI cloud infrastructure and computational capacity. Huang mentioned that Nvidia is providing complete systems, including CPUs, GPUs, networking, and software stacks for hyperscalers, sovereign AI projects, and AI-native cloud providers. | CoreWeave, EBS, cloud infrastructure companies |
| AI models | The evolution of AI has progressed from generative AI to “agentic AI,” wherein models are capable of reasoning, planning tasks, and autonomously using tools. These enterprises are developing the foundational models that enable this transition. | LLMs like OpenAI, Anthropic, xAI, and others |
| Applications | This layer reflects where AI eventually influences businesses and society through tangible software and products that leverage AI infrastructure and models. | Voice booking, retail search, security healthcare (QureAI), etc. |
Huang remarked that Nvidia is investing and forming partnerships across all five layers, rather than narrowing its focus solely to semiconductor sales. According to him, the company’s strategy aims to bolster the wider ecosystem as global AI adoption ramps up.
Nvidia, currently the most valuable company in the world, announced first-quarter earnings that exceeded expectations on May 20.
First Published: May 21, 2026 1:11 PM IST
