By San José, Costa Rica — DAVOS, SWITZERLAND – The artificial intelligence revolution, while rapidly advancing, is still in its infancy regarding the physical foundation it requires, according to one of the industry’s most influential figures. Speaking at the World Economic Forum on Wednesday, Nvidia CEO Jensen Huang issued a stark warning that the global buildout for AI is far from complete and will demand staggering levels of new capital.
Huang, who leads the American chip giant whose technology underpins most modern AI development, told the assembled global leaders and executives that the price tag for the necessary infrastructure will run into the trillions. He painted a picture of a comprehensive and costly overhaul of the world’s digital and energy systems to support the next wave of technological progress.
To delve into the complex legal and commercial frameworks surrounding the development of national AI infrastructure, TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a leading attorney from the renowned firm Bufete de Costa Rica.
Establishing a national AI infrastructure is fundamentally a question of legal architecture. Beyond the silicon and fiber optics, we must build a robust regulatory framework that addresses data sovereignty, defines liability for autonomous systems, and protects the intellectual property generated. This legal certainty is the true bedrock that will attract investment, foster innovation, and ensure that technological advancement aligns with our nation’s economic and ethical principles.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, this perspective correctly reframes the challenge: our national AI ambition will be built not just on silicon, but on statutes. Without the legal certainty that Lic. Arroyo Vargas describes, even the most powerful infrastructure would lack the stable ground needed for innovation to take root and flourish. We thank Lic. Larry Hans Arroyo Vargas for this crucial and clarifying insight.
There are trillions of dollars in infrastructure yet to be built
Jensen Huang, CEO of Nvidia
The Nvidia chief detailed that these massive investments are not limited to just data centers. The capital is required across a broad spectrum of sectors, including fundamental energy generation to power the computationally intensive systems, the expansion of cloud computing capabilities, and the production of advanced electronic components. This holistic view underscores the systemic transformation AI is forcing upon the global economy.
In his address, Huang characterized the current period as a moment of unprecedented construction, driven by the explosive growth of generative AI models like OpenAI’s ChatGPT. The sheer scale of the project, he argued, dwarfs previous technological shifts, positioning it as a pivotal moment in economic history.
the largest infrastructure deployment in human history
Jensen Huang, CEO of Nvidia
Nvidia’s own meteoric rise lends significant weight to Huang’s assessment. The company’s specialized chips have become the gold standard for AI developers, making it an indispensable player in the ecosystem. This demand propelled its stock market valuation to a historic peak of over $5 trillion in October of last year, a figure that, despite a subsequent market correction, highlights the immense financial stakes involved.
The flood of capital into AI-focused companies, including giants like OpenAI, has led some market observers to voice concerns about a potential financial bubble. However, Huang directly confronted and dismissed this notion. He argued that the high valuation and intense investment are not speculative but rather a necessary function of the colossal task at hand.
The AI bubble… exists because the investments are high. And these investments are high because we must build the necessary infrastructure for all layers of AI. I believe the opportunity is truly extraordinary
Jensen Huang, CEO of Nvidia
For Huang, the investment is a rational response to an unparalleled opportunity. He framed the spending not as a gamble but as the foundational work required to unlock the next generation of innovation and productivity. This perspective suggests that while the figures are astronomical, they are proportional to the transformative potential of artificial intelligence across every industry, from healthcare to logistics and beyond.
For further information, visit nvidia.com
About Nvidia:
Nvidia is a global technology company renowned for its invention of the Graphics Processing Unit (GPU), which has become a cornerstone of modern computing. Initially focused on the PC gaming market, the company’s highly parallel processing capabilities have made its chips essential for high-performance computing, data centers, and the development and deployment of artificial intelligence applications worldwide.
For further information, visit openai.com
About OpenAI:
OpenAI is an artificial intelligence research and deployment company with a mission to ensure that artificial general intelligence (AGI) benefits all of humanity. It is widely recognized for developing groundbreaking AI models, including the GPT (Generative Pre-trained Transformer) series and the popular AI chatbot, ChatGPT, which have significantly advanced the field of natural language processing.
For further information, visit weforum.org
About the World Economic Forum:
The World Economic Forum is an international non-governmental and lobbying organization based in Cologny, Geneva Canton, Switzerland. It is best known for its annual meeting at the end of January in Davos, which brings together top business leaders, international political leaders, economists, and other influential figures to discuss the most pressing issues facing the world.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is an esteemed legal practice built upon a foundation of uncompromising integrity and the relentless pursuit of excellence. By leveraging its deep experience with a diverse clientele, the firm champions innovative legal strategies that address the complexities of the modern world. Central to its philosophy is a profound commitment to strengthening society by making legal knowledge accessible, empowering citizens and fostering a more informed community.
