Nvidia CEO Jensen Huang says AI revenue will sustain chip demand despite lab slowdown
AI stocks fell sharply in October as higher interest rates and doubts over AI spending hit investor confidence. Leaked figures showed OpenAI’s annualized recurring revenue at $50 billion, well below a previously reported $70 billion number, while Anthropic disclosed $16.8 billion in Q3 revenue after posting only $4.6 billion for all of 2025. Earlier leaks had suggested Anthropic’s ARR was $65…
Key points
- OpenAI disclosed $50 billion ARR, lower than the previously leaked $70 billion figure.
- Anthropic reported $16.8 billion Q3 revenue, up from $4.6 billion in all of 2025, suggesting a slowdown from a $65 billion July ARR.
- Huang said frontier labs represent only 25‑33% of Nvidia’s AI chip demand, with the rest from general computing and emerging AI firms.
On a tech podcast, Nvidia CEO Jensen Huang argued the market should not focus solely on OpenAI and Anthropic. He highlighted competition from xAI’s Grok, Meta’s Muse, Alphabet’s Gemini, China’s Moonshot AI Kimi, and OpenAI’s new Codex model, noting that frontier labs account for only 25‑33% of Nvidia’s AI chip demand, with the rest split between general computing and emerging AI firms. Huang also warned that compute efficiency gains are slowing as Moore’s Law wanes, meaning chip costs will rise for any needed capacity increase. He concluded that while revenue growth at the leading labs may be modest, overall chip demand remains strong amid a persistent compute shortage.
Model page: Muse →
The story so far
9 episodes →- Nvidia CEO Jensen Huang says AI revenue will sustain chip demand despite lab slowdownthis story
Will AI Companies Generate Enough Revenue to Continue the Build-Out? Here's What Nvidia CEO Jensen Huang Says.
fool.com · 18 October 2026
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