Nvidia CEO cites high neocloud demand amid chip gap with Huawei

Jensen Huang spoke at Nvidia’s GTC conference in Berlin. He said demand for neocloud firms is "off the charts". He added that working capital is scarce, holding back growth.

Huang highlighted power as a major constraint for the AI boom, especially in Europe. He said the allocation of energy to companies like Nebius and Mistral is crucial. He noted that if neoclouds in Europe establish infrastructure, the AI economy will start there.

Nvidia has committed nearly $10 billion to companies, universities, and research institutions in Europe. The company announced a stake of over $1 billion in five UK startups. It is also investing in French startups.

According to a SCMP report, Huawei’s DeepSeek is helping Huawei Technologies catch up with Nvidia’s chip hardware and software ecosystem. DeepSeek’s software releases and use of Ascend 950PR chips show the technological gap with the US is closing. The report said this could mean Jensen Huang’s "nightmare is starting to come true".

The combination of strong demand and capital constraints, along with Huawei’s progress, shows the competitive dynamics in the AI chip market. Nvidia sees opportunities but faces resource limits. Huawei’s DeepSeek is narrowing the gap with Nvidia’s ecosystem.