We are Now a Power-Limited Industry, says Jensen Huang

The NVIDIA CEO introduced the concept of ‘AI factories’ as the new standard for data centre infrastructure.
AI has reached a critical juncture, becoming more intelligent and useful due to its reasoning ability. This advancement has led to a significant increase in computational requirements, with the industry needing much more computing power than previously anticipated.  The generation of tokens for reasoning is a key factor in this increased demand, according to NVIDIA CEO Jensen Huang, who recently addressed the future of AI and computing infrastructure at the GTC 2025 summit in San Jose earlier this week.  His keynote highlighted AI’s rapid evolution and the immense computational power required to support its growth. “Every single data centre in the future will be power-limited. We are now a power-limited industry,” he said. With AI models growing exponentially in co
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Picture of Sanjana Gupta
Sanjana Gupta
An information designer by training, Sanjana likes to delve into deep tech and enjoys learning about quantum, space, robotics and chips that build up our world. Outside of work, she likes to spend her time with books, especially those that explore the absurd.
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