San Francisco: Nvidia chief executive Jensen Huang has rejected fears that artificial intelligence will replace traditional software tools, after a sharp selloff in global technology stocks.

Speaking at an AI event hosted by Cisco in San Francisco, Huang said the idea that AI would make software tools useless was illogical. He explained that AI systems are built using existing software and still depend on those tools to work properly. According to him, AI should be seen as something that strengthens software, not something that removes the need for it.

His comments came after investors sold off shares of many software and technology companies across Asia and the United States. The fall followed the launch of a powerful new AI chatbot that raised concerns about how quickly AI could change the software industry and affect company earnings.

Market analysts said the reaction showed growing anxiety among investors about how fast AI is evolving and whether traditional software firms can keep up. Shares of several major software companies dropped as traders worried that new AI products could reduce demand for older business tools.

Despite the market turbulence, Nvidia continues to benefit from strong demand for its chips used in AI systems. The company is also reported to be in talks to make a major investment in OpenAI, underlining its long term confidence in the AI sector.

Huang said the future of AI depends on cooperation between hardware, software and developers. He added that new AI models will still need software platforms, coding tools and cloud systems to function and improve.

For now, markets remain nervous as investors try to understand how AI will reshape the technology industry. Nvidia’s leadership insists that software is not being replaced, but instead entering a new phase powered by artificial intelligence.