AI won't kill software companies, says NVIDIA's Jensen Huang
What's the story
NVIDIA CEO Jensen Huang has dismissed the idea that artificial intelligence (AI) could render traditional software companies obsolete. He made the remarks at an AI conference organized by Cisco in San Francisco. His comments come as global software stocks have taken a hit amid fears of AI-driven automation impacting software and IT services.
Tool reliance
AI isn't replacing software, but rather consuming it: Huang
Huang emphasized that intelligence relies on tools, be it a human or an advanced AI system. He said, "If you were a human or robot, artificial general robotics, would you use tools or reinvent tools? The answer is obviously to use tools." This highlights his belief that AI isn't replacing software but rather consuming it as part of its operation.
Market impact
IT giants lose ₹1.9 lakh crore in 1 day
Huang's comments come as global software stocks have witnessed a massive sell-off. In India, IT giants Infosys, TCS, HCL Tech, Wipro and LTIMindtree suffered heavy losses. The market capitalization of these companies took a hit of nearly ₹1.9 lakh crore in just one day. Infosys and Mphasis fell over 7%, while TCS and HCL Tech also ended lower.
Investor worries
Sell-off triggered by AI start-up Anthropic's product update
The sell-off was triggered by AI start-up Anthropic's latest product update. The company launched new tools for corporate legal teams, capable of reviewing contracts and managing compliance processes. This raised questions among investors about the future of software and IT services built around roles such as lawyers, analysts, and support staff.
Company response
Anthropic defends legal tool amid market reaction
In response to the market's reaction, Anthropic has defended its legal-focused tool. The company clarified that it doesn't intend to provide legal advice and AI-generated outputs should be reviewed by licensed professionals. It also launched open-source tools for sales and customer service, which are meant to work with existing systems rather than replace them.