The air in Davos crackled with anticipation. Billionaires and world leaders whispered about AI, its promise and peril hanging heavy. I watched Nvidia CEO Jensen Huang take the stage, his leather jacket a stark contrast to the pinstripes around him; he was about to drop a bombshell that would either reassure or infuriate the anxious crowd.
While tech billionaire Elon Musk argues that advances in AI and robotics will render saving for retirement irrelevant, claiming that automation will lead to lower costs and abundance for everyone, another tech billionaire is pitching a very different, more believable future.
Nvidia CEO Jensen Huang says the AI boom will actually increase demand for tradespeople like plumbers and electricians, as well as steel and construction workers.
Huang said these workers could make “six-figure salaries” thanks to what he’s dubbed the “largest infrastructure build out in human history,” which he claims is already a few hundred billion dollars in.
Huang made the comments today during a conversation with BlackRock CEO Larry Fink at the World Economic Forum in Davos. At the conference, Fink pressed Huang on how he sees AI reshaping the economy and the labor market.
To explain his thinking, Huang broke AI down into what he called a “five-layer cake.” Applications sit at the top, followed by AI models, cloud services, chips, and energy at the bottom. According to Huang, the real economic gains from AI will come as industries like healthcare, manufacturing, and financial services adopt AI. But to get there, countries first need to build out the lower layers of that cake, which is where trade jobs come in.
“And so we’re talking about six-figure salaries for people who are building chip factories or computer factories or AI factories,” said Huang. “Everybody should be able to make a great living. You don’t need to have a PhD in computer science to do so.”
For everyone else, Huang pushed back on fears that AI will rapidly wipe out white-collar professions. He pointed to radiology, a field seen as especially vulnerable because AI systems are good at analyzing images. Instead of replacing radiologists, Huang said AI has helped them become more productive, see more patients, and actually increase the number of radiologists.
When asked how this applies to developing countries, Huang argued they should treat AI infrastructure the same way they treat roads and energy.
“I really believe that every country should get involved to build AI infrastructure, build your own AI, take advantage of your fundamental natural resource, which is your language and culture,” Huang said. “Develop your AI, continue to refine it, and have your national intelligence be part of your ecosystem.”
That sentiment vaguely echoed comments made by Palantir CEO Alex Karp at Davos, who said that while AI will destroy jobs in the humanities, it will still leave plenty of work for people with vocational training.
“There will be more than enough jobs for the citizens of your nation, especially those with vocational training,” Karp said. “I do think these trends really do make it hard to imagine why we should have large-scale immigration unless you have a very specialized skill.”
Huang ultimately wrapped the conversation with a call for even more investment in AI.
All of which is pretty convenient coming from someone whose wealth is tied to a company that powers one of the bottom layers of this AI cake.
The AI Boom: A Rising Tide Lifts All Boats?
I overheard a construction worker on my train this morning complaining about the cost of living. He paused, then smirked and said, “At least my job can’t be automated.” Maybe he was right.
Huang’s vision suggests that the AI revolution is not a zero-sum game. It’s not simply about replacing humans with machines. Instead, it’s a massive construction project. This “five-layer cake” model is like a modern-day Tower of Babel, but instead of reaching the heavens, it powers the digital world. If he’s right, you might want to trade your keyboard for a wrench.
Will AI Replace Tradespeople?
While some fret about AI taking over white-collar jobs, Huang argues the opposite. The AI boom demands a physical infrastructure. Think of it: data centers, chip factories, and energy plants. These aren’t built by algorithms; they’re built by human hands. This is where plumbers, electricians, and construction workers become indispensable.
Six-Figure Salaries for Skilled Trades: Too Good to Be True?
I spoke to an electrician friend of mine who laughed when I told him about Huang’s prediction. “Six figures? Maybe in Silicon Valley,” he scoffed.
Huang’s claim of “six-figure salaries” might sound like hyperbole, yet it highlights a critical point: the value of skilled labor in an increasingly digital world. As AI advances, the demand for individuals who can build and maintain the physical infrastructure supporting it will surge. Consider the analogy of the Gold Rush: it wasn’t the gold miners who became wealthy, but those who sold the picks and shovels. In this AI gold rush, tradespeople are holding the essential tools.
How Should Developing Countries Approach AI?
Huang’s advice to developing nations is simple: build your own AI infrastructure. He sees AI as a resource, like roads or energy, that should be developed locally. This approach could allow countries to tailor AI to their specific needs, languages, and cultures.
Beyond the Bots: The Human Element of AI
I recently read an article about AI-powered radiology tools. Instead of replacing radiologists, these tools are assisting them, improving accuracy and efficiency. This echoes Huang’s point: AI isn’t necessarily about replacement, but about augmentation.
Huang’s defense of white-collar professions centers on the idea of augmentation rather than automation. He uses radiology as an example, suggesting AI enhances human capabilities. This implies a collaborative future where AI and humans work side-by-side, each leveraging their strengths. But is this optimism justified, or is it a convenient narrative from someone who stands to profit handsomely?
What Role Will Companies Like Nvidia Play in This Future?
Huang’s company, Nvidia, is at the heart of the AI revolution, providing the chips and technology that power AI systems. This puts him in a unique position to shape the future of AI and influence the conversation around its impact.
Huang’s vision, while optimistic, is undeniably self-serving. Nvidia, after all, stands to gain immensely from increased investment in AI infrastructure. Is his prediction a genuine assessment, or a carefully crafted sales pitch designed to fuel the AI boom further?