Nvidia (NVDA) Stock Slips 3% as Huang Says He Would Pull Chips From Unsafe AI Builders

TLDR

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Nvidia (NVDA) stock closed at $221.30 on Tuesday, down $7.22 or 3%, and was near $217.86 in premarket trading Wednesday.
CEO Jensen Huang told Bloomberg he would stop supplying chips to a developer of unsafe AI, after talking with them first.
Nvidia will put $250 million over five years into UK AI safety research, with Oxford and UCL taking part.
Huang brushed off AI bubble fears and said demand for AI infrastructure will exceed component supply for several years.
Chip stocks led U.S. declines, and Bharti Airtel’s Sunil Mittal urged governments to set AI rules early.

Nvidia (NVDA) stock ended Tuesday at $221.30, down $7.22, or 3%. Premarket trading on Wednesday had it near $217.86, off another 2%.

NVIDIA Corporation, NVDA

Chip stocks led the market lower in U.S. trading. The drop came on the same day Nvidia’s CEO spoke about AI safety in London.

Jensen Huang sat down with Bloomberg’s Emily Chang and got a pointed question. Would he stop selling chips to a company building unsafe AI?

“It’s a hypothetical, but yes,” he said. A conversation would come first.

What Huang Said About AI Safety

Huang said Nvidia does not run other people’s companies. Its technology is general-purpose, so there is a limit to the judgment it applies.

He does not think current worries about AI are justified. He called them growing pains for a fast-moving industry.

Many young companies are “growing incredibly fast,” he said. They are still growing into the responsibility that comes with it.

Huang also called some of the concern “self-imposed.” The industry, in his words, is doing a “horrible job” of explaining what AI can offer.

His answer to safety fears is more AI. “AI is that monitor,” he said, and he wants faster work on containment and monitoring tools.

Anthropic CEO Dario Amodei has called for an industrywide slowdown. Huang takes a different view and says the software can be controlled.

Nvidia is backing UK research with $250 million over five years. The money gives researchers access to advanced computing time.

Oxford University and University College London are among the schools involved. They will study safeguards and ways to control AI agents.

Bubble Talk and Calls for Rules

Huang is touring Europe ahead of a company event in Berlin. In London, he also waved off fears of an AI bubble.

He said demand for AI infrastructure will exceed component supply for several years. Supply and demand will balance at some point, he said, but not yet.

In India, Bharti Airtel’s Sunil Mittal urged governments to set AI rules early. He said the technology is moving faster than regulators can prepare.

Mittal pointed to founders warning that their agents “may run rogue.” He asked whether governments will act only after “an accident happens.”

Nvidia stock was near $217.86 in premarket trading Wednesday, after closing at $221.30 on Tuesday.

Nvidia (NVDA) Stock Slips 3% as Huang Says He Would Pull Chips From Unsafe AI Builders

TLDR

What Huang Said About AI Safety

Bubble Talk and Calls for Rules

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