During the World Economic Forum on January 21, 2026, NVIDIA founder and CEO Jensen Huang stated that three pivotal shifts have occurred in the artificial intelligence field over the past year, signaling AI's evolution from possessing singular model capabilities into a versatile technological platform capable of powering real-world systems.
First, large language models have begun to demonstrate general reasoning and planning capabilities. The latest generation of large language models can now perform reasoning in contexts they were not specifically trained for, deconstructing complex problems into multi-step thought processes and formulating action plans to achieve goals. This signifies that AI is progressing from being "generative models" to becoming intelligent agent systems (Agentic AI) capable of executing tasks, collaborating with tools, and accomplishing objectives.
Second, the opening up of reasoning capabilities has significantly accelerated industry adoption. Open-source reasoning models, exemplified by DeepSeek, have enabled businesses, research institutions, and developers to access advanced reasoning capabilities more broadly. Subsequently, a wave of open reasoning models has rapidly emerged, propelling AI's transition from being confined to a few leading institutions toward large-scale industry deployment, establishing it as a universal productivity tool for enterprises and entire sectors.
Third, physical AI is becoming a reality. AI is no longer limited to understanding language and code but has begun to comprehend the laws of the physical world, integrating deeply with sensors, robotics, and industrial systems. This advancement enables AI to enter real-world scenarios such as manufacturing, industry, logistics, and energy, driving substantial improvements in automation and production efficiency.
Huang pointed out that these three developments collectively mark AI's transition from the digital world into the physical world.
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