Jensen Huang: Demand for neocloud is extremely high, but capital is insufficient.

During an interview with CNBC’s Arjun Kharpal at the GTC conference in Berlin on Thursday, NVIDIA CEO Jensen Huang said that demand for neocloud is strong and its capabilities are robust—but its expansion is hitting a bottleneck due to insufficient working capital. He noted that demand for AI across multiple application areas is extremely strong, and the required capital scale has already significantly outstripped current supply—though this gap will eventually be closed. Huang emphasized that power has become the primary constraint on scaling AI, especially in Europe where electricity prices are generally higher; therefore, prioritizing limited energy resources for homegrown AI firms like Nebius and Mistral is critical to their growth. He further explained that while external investment can flow into Europe, it hinges on first building localized infrastructure; only when Europe’s neoclouds can independently deploy infrastructure will the AI ecosystem—and associated economic activity—truly take root and remain long-term in the region. He added that overall demand for neocloud across Europe remains far too low.