Nvidia CEO Huang dismisses fears over AI as stock selloff deepens

Nvidia CEO Jensen Huang dismissed fears that artificial intelligence will replace software and related tools, calling the ‍idea "illogical", after a significant ​selloff in global software stocks on Tuesday.

The selloff, partly sparked by AI developer Anthropic's updated chatbot release last week that heightened fears of AI-driven disruption in the data and professional services industry, broadened on Wednesday, hitting software stocks in India, Japan and China.

Speaking at an ​artificial intelligence conference in San Francisco hosted by Cisco Systems Huang said worries that AI will make software companies less relevant are misguided and AI will continue to rely on existing software rather than rebuild basic tools from scratch.

 

"There's this notion that the tool in the software industry is in decline, and will be replaced by AI ... It is the most illogical thing in the world, and time will prove itself," Huang said.

"If you were a human or robot, artificial, general robotics, would you use tools or reinvent tools? ??The answer, obviously, is to use tools ... That's why the latest breakthroughs ‌in AI are about tool use, because ​the tools are designed to be explicit."

Shares of Indian IT exporters slumped 6.3 per cent on Wednesday, tracking losses in global ??software stocks. Tech services firm Infosys was among the biggest losers, plunging ??7.3 per cent.

China's ‍CSI Software Services Index also fell 3 per cent, while in Hong Kong, shares of software company Kingdee International Software Group tumbled more ‍than ‌13 per cent.

In Japan, staffing ​agency Recruit Holdings and Nomura Research tumbled ‍9 per cent and 8 per cent, respectively.