①NVIDIA CEO Jensen Huang refuted concerns that 'artificial intelligence might replace software and related tools,' calling such ideas 'illogical.' ②Huang stated that AI systems are designed to work in tandem with existing software tools, rather than completely replacing them.
On Tuesday, Eastern Time, amidst a significant sell-off in global software stocks, $NVIDIA (NVDA.US)$ NVIDIA CEO Jensen Huang publicly addressed concerns, refuting the notion that 'artificial intelligence may replace software and related tools' as 'illogical.'
Jensen Huang: AI Will Not Replace Software
Last week, artificial intelligence developer Anthropic released an upgraded version of its chatbot, intensifying concerns that AI could disrupt the traditional business models of software companies. By Wednesday, the sell-off had spread further, impacting software stocks across markets in India, Japan, and Hong Kong.
At an AI conference hosted by Cisco Systems in San Francisco, Huang emphasized that AI systems are designed to complement existing software tools rather than fully replace them.
He bluntly stated that the fear that 'AI will make software companies less relevant' is misguided, as AI will continue to rely on existing software rather than rebuild fundamental tools from scratch.
Jensen Huang stated:
“There’s a notion that tools within the software industry are declining and will be replaced by AI… This is one of the most illogical things in the world; time will prove it.”
“If you’re human or a robot, a synthetic general-purpose robot, would you use tools or reinvent them? The answer is obviously to use tools… This is why the latest breakthroughs in AI are all related to tool usage, as tools are designed with clear intent.”
Huang stressed that the latest advancements in AI actually focus on how to more effectively utilize existing tools. Since software tools are designed to support complex operations, they will remain an essential component of advanced AI ecosystems.
The sell-off in software stocks has spread to Asia.
Last night, U.S.-listed software stocks were hit by widespread selling: $Thomson Reuters (TRI.US)$ one stock plummeted 16%, $CS Disco (LAW.US)$ another fell 12%, $LegalZoom (LZ.US)$ while yet another plunged 20%.
On Wednesday this week, the sell-off spread to Asia, with India being hit the hardest: the Nifty IT Index in India fell by more than 6%, with large technology service providers suffering the most, such as Infosys, whose shares dropped as much as 7.3%.
Stock prices of Japanese technology and research-related companies also saw significant declines, with Recruit Holdings, a human resources company, and Nomura Research Institute each falling 9% and 8%, respectively.
In Hong Kong, China, shares of a software company $KINGDEE INT'L (00268.HK)$ dropped more than 12%.
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Editor/Doris
