NVIDIA CEO Jensen Huang has refuted concerns that artificial intelligence will replace software and related tools, labeling the idea "illogical," following a significant sell-off in global software stocks on Tuesday.
This market downturn was partly triggered by AI developer Anthropic's launch of a new chatbot version last week, amplifying fears about AI's disruptive potential for the data and professional services industries; the selling pressure spread further on Wednesday, affecting software stocks in India, Japan, and China.
Speaking at an AI conference hosted by Cisco Systems in San Francisco, Huang stated that the worry AI will diminish the importance of software companies is misguided, asserting that AI will continue to rely on existing software rather than rebuild foundational tools from scratch.
Huang remarked, "There is a current view that the tools of the software industry are in decline and will be replaced by AI... this is the most illogical statement in the world, and time will tell."
"Whether it's a human, a robot, or a general-purpose AI robot, the choice is to use tools rather than reinvent them; the answer is clearly the former... this is also why the latest breakthroughs in AI focus on tool application, as these tools were designed from the outset to be functional and easy to use."
Dragged down by the global software stock decline, shares of Indian IT export companies plummeted 6.3% on Wednesday, with technology services firm Infosys leading the losses, plunging 7.3%.
China's CSI Software Services Index also fell 3%; in the Hong Kong market, software company Kingdee International Software Group saw its stock price crash by over 13%.
In the Japanese market, human resources service provider Recruit Holdings and Nomura Research Institute saw their share prices drop by 9% and 8%, respectively.
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