Nvidia Funded AI Boom Under Jensen Huang, but Gary Marcus Questions if New CEO Will Keep Writing the Checks: ‘Whole Thing Might Collapse’ Ananya Gairola Fri, November 13, 2026 at 12:48 AM EST 3 min read NVDA -4.92% Trade NVIDIA on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Nvidia Corp.'s (NASDAQ:NVDA) leadership shake-up could change how aggressively the chipmaker funds the artificial intelligence industry, potentially putting an already cash-hungry AI ecosystem at risk, NYU Professor Emeritus Gary Marcus warned.
On Thursday, speaking on CNBC's "Fast Money," Marcus said Jensen Huang's departure could introduce uncertainty into the network of investments and financing arrangements that have helped fuel the AI boom.
Nvidia announced Thursday that Huang had resigned as president, CEO and board member, effective immediately. Chief Financial Officer Colette Kress will serve as interim CEO while the board searches for a permanent successor.
Kress will retain her finance responsibilities during the transition.
Marcus described Huang as a major risk-taker who was willing to invest heavily in companies across the AI ecosystem. However, he suggested Kress could take a more "conservative" approach to those commitments.
"Why are we making all these bets when people are losing some confidence in the AI industry?" Marcus said, describing the kind of question Nvidia's new leadership might ask.
He added that Huang's exit could further weaken investor confidence in an industry already facing questions about its financial sustainability.
Read Also:Michael Burry Hints At Bigger Nvidia Asia 'Reveal' As Jensen Huang's 'Deer In The Headlights' Dig At Colette Kress Resurfaces
Marcus also raised concerns about the industry's circular financing arrangements, where Nvidia invests in AI companies and infrastructure providers that, in turn, spend money on its chips and computing products.
He warned that a pullback in Nvidia's investments could create funding gaps for companies dependent on external capital.
Marcus pointed to Anthropic's anticipated initial public offering, suggesting that roughly $10 billion in expected funding could come from Nvidia. If the chipmaker reduced that commitment to $7 billion, the resulting shortfall could create significant complications.
He noted that large language model developers are losing money and need substantial investment to sustain operations.
"Any kind of move like that and the whole thing might collapse," Marcus said.
Earlier this week, The Telegraph reported that Nvidia-backed British cloud and data-center provider Nscale is considering delaying its planned $35 billion stock market listing until next year.
Price Action: Nvidia shares are up 0.99% in after-hours trading, reaching $167.84, according to Benzinga Pro.
Benzinga Edge Stock Rankings place Nvidia in the 12th percentile for Momentum and the 98th percentile for Growth, while its price trends remain negative across the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Also:Alice Huang, Who Allegedly Spied for China, Had Stakes in Businesses Linked to Nvidia Rival Huawei: Report
Photo Courtesy: bella1105 on Shutterstock.com
Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.
This article Nvidia Funded AI Boom Under Jensen Huang, but Gary Marcus Questions if New CEO Will Keep Writing the Checks: 'Whole Thing Might Collapse' originally appeared on Benzinga.com
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
