As the AI chipmaker rockets past a $4 trillion valuation, CEO Jensen Huang lays out a stunning vision of a future with robot assistants and revived American factories, but admits the transition won't be painless.

Investing.com - OpenAI CEO Sam Altman expressed agreement with Nvidia (NASDAQ: NVDA) CEO Jensen Huang’s optimistic perspective on artificial intelligence and employment, countering concerns about widespread job displacement.

Earlier a paper by Microsoft and Carnegie Mellon University showed that while AI “ can improve efficiency, it may also reduce critical engagement, particularly in routine or lower-stakes tasks in which users simply rely on AI, raising concerns about long-term reliance and diminished independent problem-solving .”

AI models are trained to optimize outputs, but in educating children, the process is the point. If we assess children only in terms of what can be “trained,” we repeat the mistake of emphasizing output over experience.

NVIDIA CEO Jensen Huang shares some semi-optimism regarding AI-related job loss, saying that the workforce will only suffer if society runs out of ideas.

Huang talked to CNN’s Fareed Zarkaria about AI as a positive force. He called it “the greatest technology equalizer the world has ever seen.” As Nvidia’s CEO noted in his paper, there will always be jobs,

Historically, Nvidia has managed to sell its hardware at gross margins pushing 80%, which is a level typically seen with software companies that don't sell physical products. These immense mark-ups create an incentive for Nvidia's biggest clients (many of which are technology leaders in their own right) to replace its products wherever possible.

Inaccurate metaphors about the mind can cause real harm, for instance leading educators to 'train' children like algorithms.

As Nvidia briefly hit a $4 trillion market cap, AI chip rival Groq is reportedly seeking to raise up to $500 million at a $6 billion valuation to fulfill a $1.5 billion Saudi Arabia deal and scale global operations.

It would be the first time that an Nvidia product would be made with the help of humanoid robots and would be Foxconn's first AI server factory to use them on a production line, sources said.

For Nvidia, which this month became the first company to reach a $4trn market value, governments are a potentially lucrative source of business. Jefferies, an investment bank, estimates that sovereign initiatives could generate some $200bn in cumulative revenue for the chipmaker “over the coming years”;