Nvidia CEO Says Capital Scarcity Is Hindering Europe AI Growth as Neocloud Demand Stays Off the Charts
Updated
Updated · CNBC · Oct 22
Nvidia CEO Says Capital Scarcity Is Hindering Europe AI Growth as Neocloud Demand Stays Off the Charts
3 articles · Updated · CNBC · Oct 22
Summary
Jensen Huang said European neocloud demand is "off the charts," but a shortage of working capital is preventing providers from expanding fast enough to meet AI demand.
Europe's higher power costs and limited energy supply are adding another bottleneck, with Huang saying firms such as Nebius and Mistral need local infrastructure and energy allocation to scale.
Neocloud stocks were already under pressure Thursday, with Nebius down 3.6% premarket and CoreWeave off 4%, as investors question heavy AI infrastructure spending and debt-funded data center buildouts.
Nvidia is trying to accelerate that buildout through nearly $10 billion of commitments across Europe, including a stake worth more than $1 billion in five U.K. startups and investments in French startups.