# Nvidia CEO Jensen Huang says AI revenue will sustain chip demand despite lab slowdown

Digest AI · Business & Funding · published 2026-10-18T14:31:00Z

Canonical: https://digestai.news/story/nvidia-ceo-jensen-huang-says-ai-revenue-will-sustain-chip-demand-despi

## Summary

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 billion in July, with a $67.2 billion Q3 figure, implying a slowdown.

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.

## 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.

## Why it matters

Revenue trends at top AI labs drive demand for expensive chips; understanding the broader ecosystem helps investors gauge semiconductor market health.

## Sources

1. [Will AI Companies Generate Enough Revenue to Continue the Build-Out? Here's What Nvidia CEO Jensen Huang Says.](https://fool.com/investing/2026/10/19/will-ai-companies-generate-enough-revenue-to-conti) (fool.com, 2026-10-18)

Part of the developing story: [Chinese AI Models Challenge US Dominance](https://digestai.news/thread/z-ai-deploys-glm5-3flash-on-100-000chip-chinese-cluster) (9 stories)

## Cite

Digest AI, "Nvidia CEO Jensen Huang says AI revenue will sustain chip demand despite lab slowdown", 18 October 2026, https://digestai.news/story/nvidia-ceo-jensen-huang-says-ai-revenue-will-sustain-chip-demand-despi

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