Nvidia CEO Jensen Huang defended his decision to "rip the Band-Aid off" on the company’s gross margins as the chip giant continues to power some of the world’s most advanced artificial intelligence models.

Huang addressed reports of potential 15% price increases while highlighting Nvidia’s job creation, noting that the company employs roughly 42,000 people worldwide.

"This quarter we decided that we would rip the Band-Aid off, reset expectations about our gross margins, and just explain to people that in fact, we have now absorbed the cost increases," Huang said during an interview with "The Claman Countdown" that airs Thursday.

"We have also repriced our products in the marketplace, and based on that, our margins are going to come down from 75%. But it will be between 72% and 73% next year," he continued. "And so, we've now reset the expectations and removed this anxiety that everybody had about our gross margins."

Huang’s remarks came after Nvidia reported blowout earnings after Wednesday’s close, easing investor concerns about whether the AI boom is slowing.

The chip giant beat Wall Street expectations for its fiscal second quarter and issued a strong revenue outlook for the next fiscal year, sending shares up 4%.

Nvidia, valued at roughly $5 trillion, expects revenue to surpass $96 billion in the second quarter of fiscal 2027.

Huang, who co-founded the Santa Clara-based chip giant in 1993, also emphasized Nvidia’s role in job creation across the technology sector, saying the company is "creating jobs everywhere."

Out of Nvidia’s roughly 42,000 employees, 50% have a net worth exceeding $25 million, according to Yahoo Finance.

The CEO told anchor Liz Claman that while the AI boom is driving enormous demand for Nvidia and helping fuel job growth, there still are not enough skilled workers to meet that demand. That makes supply chain capacity and labor availability part of the broader backdrop to Nvidia’s growth story, especially as the company scales chip production, packaging and data center support.

"We're creating more jobs than ever," Huang said. "We're creating jobs in chip plants, packaging plants, computer plants, and of course, all of these AI data centers ."

"There’s just not enough skilled labor around the world and surely not here in the United States to be able to support my entire demand. But we have enough support for the 70% that I've forecasted," he added.

Watch Huang’s full interview on "The Claman Countdown" on Thursday at 3 p.m. ET.