NVIDIA Pivots to Software Revenue; AI Agent Traffic to Dwarf Human Traffic
Jensen Huang signals that software licensing — potentially ~$2,000/GPU/year — will become a major NVIDIA revenue stream, while Cloudflare's CEO warns AI agent traffic could be 1,000x human traffic within five years.
What we know
NVIDIA CEO Jensen Huang told investors that software licensing will become increasingly major for the company, estimating ~$2,000/GPU/year for running NVIDIA's AI agent software in AI factories — a potentially enormous revenue expansion on top of hardware. Cloudflare CEO Matthew Prince went further, predicting agent traffic will be 1,000x human traffic within five years, comparing the coming load to how COVID's traffic doubling almost broke the internet. Together, these paint a picture of an internet and computing infrastructure that is fundamentally unprepared for the AI agent era.
How the story developed
Jensen Huang signals that software licensing — potentially ~$2,000/GPU/year — will become a major NVIDIA revenue stream, while Cloudflare's CEO warns AI agent traffic could be 1,000x human traffic within five years.
At a capital markets event, Nvidia CEO Jensen Huang distinguished between investment in neoclouds and financial backstopping them, while noting neoclouds are 'completely sold out' and expected to fund themselves — signaling Nvidia won't rescue struggling AI cloud operators.
Ken Griffin called AI 'almost certainly a bubble' while Larry Fink warned slowing AI buildout would jeopardize the economy; meanwhile Jensen Huang made bullish claims about GPU longevity and physical AI architecture at GTC Berlin.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.