In a direct response to a massive global stock market sell-off, NVIDIA CEO Jensen Huang dismissed fears that AI will render software companies obsolete, calling the narrative “illogical” on February 4, 2026.
His comments were aimed at calming investors after a “SaaSpocalypse” wiped out billions in market value across the US, Japan, China, and India. The panic was largely triggered by Anthropic’s launch of 11 new specialized AI plugins for its Claude Cowork platform, which demonstrated the ability to automate complex professional tasks like legal contract reviews and compliance management.
1. The “Illogical” Argument
Speaking at an AI conference hosted by Cisco in San Francisco, Huang pushed back against the idea that AI tools would replace existing software infrastructure.
- Tool Consumption, Not Replacement: Huang argued that intelligence—whether human, robotic, or artificial—relies on using existing tools rather than reinventing them. “If you were a human or robot… would you use tools or reinvent tools? The answer, obviously, is to use tools,” he said.
- Software Foundations: He emphasized that AI systems are deeply dependent on the “software stack”—operating systems, databases, programming frameworks, and enterprise applications. Without these layers, AI models cannot function in real-world environments.
- Explicit vs. Implicit: Huang suggested that AI represents a shift from “explicit programming” (writing code) to “implicit programming” (stating intent), but the underlying software remains the core engine.
2. Impact of the “SaaSpocalypse”
The market rout on February 3–4, 2026, was one of the most severe in recent tech history, as investors feared that AI “agents” would kill the seat-based licensing model of traditional software.
| Market/Company | Estimated Loss / Impact |
| Indian IT Sector | ₹1.9 lakh crore wiped out in a single day. |
| Infosys | Stock plunged 7.3%. |
| Thomson Reuters | Dropped over 15% (Legal tech was hit hardest). |
| Nasdaq | Shed nearly $300 billion in total value. |
3. The “Radiology” Comparison
To illustrate his point, Huang often cites the evolution of radiology as proof that automation expands human roles rather than destroying them.
- The Theory: When AI took over the “task” of scanning images, radiologists didn’t disappear; they became more productive, focusing on the higher “purpose” of diagnosis and patient care.
- Application to Coding: At CES 2026, Huang noted that while he wants his engineers to spend “zero percent” of their time writing syntax (coding), he expects them to spend 100% of their time solving “undiscovered problems.”
4. Strategic Context: A Full-Stack Future
Huang’s defense of the software industry aligns with NVIDIA’s own expansion. By framing AI as a five-layer stack (Energy, Chips, Cloud, Models, Applications), he positions software at the very top as the place where “economic value is ultimately captured.”
“The notion that AI is somehow going to replace software companies is the most illogical thing in the world and time will prove itself.” — Jensen Huang, Feb 4, 2026
