By TOI Tech Desk
Publication Date: 2026-02-04 13:17:00
Nvidia CEO Jensen Huang has dismissed the market panic that recently erased over $250 billion from global software stocks. Defending the software industry against fears that AI will make it obsolete, the chief executive of the world’s most valuable company has said that this concern is the “most illogical thing.” Speaking at a recent artificial intelligence (AI) conference in San Francisco hosted by Cisco Systems, Huang said concerns that AI will replace software companies are misguided, according to The Business Times.“There’s this notion that the tool in the software industry is in decline, and will be replaced by AI … It is the most illogical thing in the world, and time will prove itself. If you were a human or robot, artificial, general robotics, would you use tools or reinvent tools? The answer, obviously, is to use tools … That’s why the latest breakthroughs in AI are about tool use, because the tools are designed to be explicit,” Huang said at the event.Huang argued that AI will continue to rely on existing software rather than rebuild basic tools from scratch, pushing back against investor fears of AI-driven disruption in the data and professional services industry.
How Anthropic’s new tool caused panic around software stock sellout
The selloff began after AI startup Anthropic released 11 open-source plugins for its Claude Cowork tool late last month. This triggered what analysts are calling a “
