Nvidia chief executive Jensen Huang has dismissed fears that artificial intelligence will replace software and related tools, calling such concerns “illogical” following a sharp selloff in global software stocks.
The remarks came after markets reacted to the latest chatbot release from AI developer Anthropic, which reignited worries that AI could disrupt software, data processing and professional services industries worldwide.
Market Selloff Driven by AI Concerns
The selloff began earlier this week and intensified on Wednesday, spreading across Asia. Software stocks in India, Japan and China were among the hardest hit as investors reassessed the risk of AI replacing software-driven business models.
India’s Nifty IT index fell 6.3%, with Infosys among the biggest decliners, sliding 7.3%. In China, the CSI Software Services Index dropped 3%, while Hong Kong-listed Kingdee International Software Group plunged more than 13%.
Japanese stocks also suffered steep losses, with Recruit Holdings falling 9% and Nomura Research Institute down 8%.
Huang Defends Software’s Role in AI
Speaking at an artificial intelligence conference in San Francisco hosted by Cisco Systems, Huang said fears that AI replacing software would undermine the relevance of software companies were misguided.
“There’s this notion that the tool in the software industry is in decline and will be replaced by AI,” Huang said. “It is the most illogical thing in the world, and time will prove itself.”
He argued that AI systems are designed to work with existing tools rather than discard them, noting that both humans and machines rely on established software to function efficiently.
“If you were a human or robot, would you use tools or reinvent tools?” Huang said. “The answer, obviously, is to use tools.”
Tool Use Central to AI Advances
Huang said recent breakthroughs in artificial intelligence highlight the importance of tool use, not the elimination of software.
“That’s why the latest breakthroughs in AI are about tool use,” he said, adding that existing software tools are intentionally designed to be explicit and reliable.
His comments contrast sharply with growing market anxiety over AI replacing software, as investors continue to grapple with how rapidly advancing AI models will reshape the global technology landscape.