NVIDIA founder and CEO Jensen Huang said the market misunderstood about DeepSeek’s technological advancement and its potential to negatively impact the chipmaker’s business.
Instead, Huang called DeepSeek’s R1 open source reasoning model “incredibly exciting” when talking to Datadirect Networks CEO Alex Bouzari The pre-recorded interview was released on Thursday.
“I think the market responded to R1, like ‘Oh my goodness. AI is done,” Huang told Bouzari. “You know, it fell from the sky. We don’t need to do any calculations anymore. On the contrary. It’s [the] The exact opposite. ”
Huang said the release of R1 is essentially beneficial to the AI market and will accelerate AI adoption rather than release, meaning that the market no longer uses computing resources, such as those generated by Nvidia.
“It makes everyone notice, okay, there is an opportunity to make the model more efficient than we think it’s possible,” Huang said. “So it’s expanding and it’s accelerating the adoption of AI.”
He also noted that despite the advancements in pre-training AI models, DeepSeek will remain important and resource-intensive after training.
Huang added: “Reasoning is a considerable part of it.”
Nvidia declined to provide further comments.
Huang’s comments were nearly a month after DeepSeek released an open source version of its R1 model that rocked the AI market and seemed to have a disproportionate impact on Nvidia. The company’s share price fell 16.9% in a market in a day after the DeepSeek news release.
NVIDIA shares closed at $142.62 on January 24, according to Yahoo Finance. On Monday, January 27, the stock fell rapidly, closing at $118.52 per share. This event NVIDIA’s market value has dropped by $600 billion In just three days.
Since then, the chip company’s stock has almost completely recovered. The stock opened at $140 per share on Friday, meaning the company was able to fully recover its loss value in about a month. Nvidia reported it Fourth quarter revenue on February 26which may address market responses more.
Meanwhile, DeepSeek announced Thursday Open source five code repositories As part of next week’s “Open Source Week” event.
