Nvidia CEO Jensen Huang claims AI no longer hallucinates, apparently hallucinating himself

Anyone who thinks AI is in a bubble might feel vindicated by a recent CNBC interview with Nvidia CEO Jensen Huang.

The interview dropped after Nvidia’s biggest customers Meta, Amazon, and Google took a hit on the stock market for announcing even bigger AI infrastructure investments on top of already massive budgets.

In the interview, Huang repeats what we keep hearing from the AI industry: more compute automatically means more revenue (“If they could have twice as much compute, the revenues would go up four times as much”). As a chip supplier, Nvidia profits directly from people buying into that equation.

And there’s some truth to the basic narrative. Demand for AI compute is real, the models are getting better, revenue at the major AI providers is actually growing, and progress in agentic AI is impressive. “Anthropic is making great money. OpenAI is making great money,” Huang says, not mentioning the cost of it all.

But Huang stretches these observations past the breaking point. He calls the current AI expansion the “largest infrastructure build out in human history,” as if electrification, railroads, highway systems, or the global buildout of fossil fuel infrastructure never happened.

Huang’s own hallucination: claiming AI models no longer hallucinate

This is most obvious at one point in particular. Huang literally says: “AI became super useful, no longer hallucinating.” Meaning language models no longer generate false information. That’s just not true.

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