Nvidia CEO Jensen Huang says market got it wrong about DeepSeek’s impact
NVIDIA founder and CEO Jensen Huang said that the market did it wrong when it comes to the technological progress of Deepseek and the potential to negatively influence the activities of the chip maker.
Instead, Huang called the R1 -open Source reasoning model of Deepseek “incredibly exciting” while spoke with Alex Bouzari, CEO of DataAdirect Networks, in a Pre -recorded interview that was released on Thursday.
“I think the market reacted to R1, like in:” Oh my God. Ai is ready, “Huang told Bouzari.” You know, it has fallen out of the sky. We don’t have to do a computer anymore. It is be the opposite. [the] Completely opposite. “
Huang said that the release of R1 is inherently good for the AI market and the acceptance of AI will accelerate in contrast to this release, which means that the market no longer had a use for arithmetic sources – as it produces Nvidia.
“It makes everyone notice that, okay, there are opportunities to make the models much more efficient than what we thought was possible,” said Huang. “And so it expands, and it speeds up the acceptance of AI.”
He also pointed out that, despite the progress that Deepseek has made in AI models for the training, after training will remain important and resource-intensive.
“Reasoning is a fairly calculation -intensive part of it,” Huang added.
Nvidia refused to comment further.
The comments from Huang come almost a month after Deepseek had released the Open Source version of his R1 model, which the AI market generally rocked and Nvidia seemed to influence disproportionately. The company’s share price fell 16.9% in one market day after the release of Deepseek’s news.
The Nvidia shares closed $ 142.62 per share at 242.62 on January 24, according to data from Yahoo Finance. The following Monday, January 27, the share fell quickly and closed at $ 118.52 per share. This event wiped $ 600 billion from the market capitalization of Nvidia in just three days.
The shares of the chip company have since fully recovered. On Friday, the share was opened for $ 140 per share, which means that the company was able to regain that lost value in about a month. Nvidia reports his Q4 income on 26 FebruaryWho will probably tackle the market reaction more.
In the meantime, Deepseek announced on Thursday that it is planning to open five code repositories as part of an “Open Source Week” event next week.
