In Davos, Nvidia reveals three vectors of AI development: from agent dynamics to understanding the physical world

At the Davos Forum, Nvidia CEO Jensen Huang shared key milestones in the development of artificial intelligence that have radically transformed the entire industry. His speech revealed the dynamics of AI transformation — from theoretical models to practical solutions that are already being implemented in real applications.

First Breakthrough: From Illusions to Agent Intelligence

Huang noted that just a few years ago, AI models produced many erroneous answers and contained significant distortions in calculations. However, over the past year, a qualitative transformation has occurred. Models have begun demonstrating genuine reasoning abilities, strategic planning, and autonomous problem-solving. This development has led to the emergence of a new paradigm — Agent AI, capable of independently performing complex tasks without prior training on similar cases.

Second Direction: The Open-Source Revolution

The second wave of change is associated with the emergence of open-source inference models. The launch of DeepSeek marked a critical point in AI history — for the first time, powerful models became accessible not only to corporations but also to research institutions, educational organizations, and independent developers. Since then, the open model ecosystem has begun to expand rapidly, creating numerous innovations and enabling various industries to adapt AI to their specific needs.

Third Vector: Physical AI and Understanding the Real World

The most ambitious area is the development of physical AI, which goes far beyond text and image processing. This new generation of systems can not only understand language but also comprehend the laws of the physical world. Models demonstrate deep understanding in diverse fields such as molecular biology, chemical processes, and classical physics.

In the field of physics, AI has revealed its ability to analyze complex phenomena — from the dynamics of liquids under various conditions to the interaction of elementary particles and principles of quantum mechanics. This means AI could become a universal tool for scientists studying the fundamental laws of nature.

These three directions define not just the evolution of technology, but the transition of AI into a new status — from an auxiliary tool to a partner capable of operating in the physical world and applying the logic required to solve real-world problems in economics, science, and manufacturing.