Nvidia’s CEO pitches $85T sovereign AI infrastructure build

Nvidia CEO Jensen Huang has encouraged countries to develop their own AI infrastructure and has estimated that spending could reach $85 trillion over 15 years. In July, Huang also invested £500 million in UK cloud company NScale.

Palantir is taking a similar approach for businesses. In June, it partnered with Nvidia on a Sovereign AI Operating System that allows companies to train AI models on their own hardware.

Palantir’s US commercial revenue grew 149% year over year in the second quarter, with the company pointing to rising demand for sovereign AI. Analyst Dan Ives has identified Nvidia and Palantir as early companies benefiting from the trend.

Fundstrat co-founder Tom Lee warned about the risks of relying on AI models developed and trained by others.

He said that if China controls such models, they could influence how people process information and potentially lead to wrong conclusions.

Lee said institutional investors still have room to increase their exposure to AI, noting that most gains so far have been concentrated among a small group of early investors. The impact of sovereign AI is still being tested, but Nvidia and Palantir are both investing in the idea, keeping it in focus for investors.