AGI is here, Nvidia CEO Jensen Huang has declared. Here’s why the market doesn’t care |
AGI is here, Nvidia CEO Jensen Huang has declared. Here’s why the market doesn’t care
AGI, the technology once imagined to both destroy and enrich human civilization, has arrived, Nvidia chief Jensen Huang declared over the weekend.
OpenAI’s newest model, Astra (“stars” in Latin), has achieved the goal, Huang wrote on X on Sunday, after training on 100,000 Grace Blackwell chips (an earlier post said 300,000 before he deleted it). His post was received with a healthy mix of supporters and detractors: Jim Cramer said Nvidia was winning from the release while crypto CEO Hunter Horsely said Huang was the “most credible referee.” But others had questions: Did Jensen not, asked AI critic Gary Marcus, have a financial incentive to declare AGI?
Markets got their first chance to weigh in Tuesday after the long Labor Day weekend. CoreWeave, battered by months of suspicion over its debt, exploded up 15%. SoftBank notched another 2%. But the hefty, lumbering Nvidia shed 2%. The last time Huang declared AGI (he’s done it twice before, by Fortune‘s count), on Lex Fridman’s podcast in March, the stock fell 0.3%. So it follows that markets don’t believe Huang, or AGI has already been priced in.
“If you look in a slightly different place,” Gil Luria, head of technology research at D.A. Davidson, told Fortune, “you’ll see that the market is responding.” Indeed, the companies most leveraged to OpenAI—SoftBank, Oracle, CoreWeave—are the ones whose stocks are up. Astra, he added, “puts OpenAI as the state-of-the-art model, which they haven’t been in about a year.”
Nvidia, on the other hand, has been the dominant market player since 2024; it’s “too big to grow,” Luria said. Two weeks ago, Nvidia........