Jensen Huang says he regrets not investing more in xAI: 'Almost everything Elon's part of, you want to be part of' (www.businessinsider.com)

Nvidia CEO Jensen Huang said he regrets not investing more in Elon Musk’s AI startup xAI, calling it the kind of opportunity “you really want to be part of.” Speaking amid reports that Nvidia is helping finance xAI’s fundraising, Huang—already an investor—said he should have doubled down, praising Musk’s track record with transformative companies. He rejected the notion that such deals are mere “circular financing,” instead framing xAI alongside OpenAI and Anthropic as part of a new generation of commercially viable models that are now “reasoning, doing research, using tools” and turning token-generation from a loss-making experiment into a profitable service. Huang used the moment to underscore a broader industry shift: AI is not a repeat of the dot‑com era but a hardware-driven, multi‑trillion‑dollar transition from CPU to GPU-led computing backed by real hyperscaler demand (~$2.5 trillion). The implication for AI/ML is clear—model capabilities and tool integration are maturing into revenue-generating products, driving massive GPU infrastructure buildout and creating sustained demand for chips, software, and services. Nvidia’s bets, plus internal gains (Huang cites widespread productivity boosts from AI coding assistants like Cursor), signal both intensified competition for talent and capital and an accelerating commercialization phase for generative and reasoning AI.