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Nvidia CEO Jensen Huang speaks, a visual metaphor for AI hallucination. [aragonresearch.com](https://aragonresearch.com/nvidi

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Nvidia CEO: AI Hallucinations Remain Years Away

Nvidia CEO Jensen Huang says AI stops hallucinating, then hallucinates himself

Updated: 2 min read

Nvidia CEO Jensen Huang sat for a CNBC interview that aired April 25. He made a striking claim: generative artificial intelligence has stopped making things up. The technical term is “hallucination.” It remains a core, unsolved flaw in large language models.

No research breakthrough has been announced to eliminate it. Huang’s statement lands as his biggest chip buyers—Meta, Amazon, and Google—face investor questions. Those companies have all signaled they will pour tens of billions more dollars into AI infrastructure this year.

Huang literally says: "AI became super useful, no longer hallucinating."

Large language models work by predicting the next most likely word. That very architecture makes them prone to confabulation. Researchers at Google and OpenAI continue to list reducing hallucinations as a primary technical challenge.

For investors, the timing is everything. Huang’s statement arrived alongside quarterly reports detailing the staggering scale of planned spending by the cloud giants, Nvidia's primary customers.

Common Questions Answered

What did OpenAI claim about citation hallucinations in GPT-5?

[nature.com](https://www.nature.com/articles/d41586-025-02853-8) reports that OpenAI claimed to have reduced the frequency of fake citations in GPT-5. The company specifically noted improvements in reducing 'hallucinations' and 'deceptions' where AI previously claimed to have performed tasks it hadn't actually completed.

Why are AI hallucinations difficult to completely eliminate?

[nature.com](https://www.nature.com/articles/d41586-025-00068-5) explains that large language models are trained to predict tokens from text corpora, which means factual knowledge is implicitly stored in model parameters rather than an explicit fact database. This inherent design makes it challenging to completely prevent hallucinations, especially for less common or more nuanced information.

What types of hallucinations do large language models typically produce?

[arxiv.org](https://arxiv.org/abs/2510.06265) describes hallucinations as AI-generated content that is fluent and syntactically correct but factually inaccurate or unsupported by external evidence. These hallucinations can range from slightly misremembered facts to completely fabricated references, undermining the reliability of AI systems in domains requiring high factual accuracy.

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