Jensen Huang, founder and CEO of Nvidia, said the market is wrong when it comes to technological advances at Deepseek and the possibility of a negative impact on Chipmaker’s business.
Instead, Huang spoke with Datadirect Networks CEO Alex Bouzari, calling Deepseek’s R1 open source inference model “incredibly exciting,” and spoke in a pre-recorded interview released Thursday. did.
“I think the market responded to R1. AI is over,” Huang told Bouzari. “You know, it fell out of the sky. You don’t need to do any more computing. It’s the exact opposite. [the] The opposite is complete. ”
Huang said the release of R1 is essentially appropriate for the AI market and will accelerate adoption of AI in contrast to this release. This means that the market is no longer using it to calculate the resources that Nvidia generates.
“Everyone realizes, now, there’s an opportunity to have a model much more efficiently than we thought possible,” Huang said. “And that’s expanding and accelerated adoption of AI.”
He also noted that despite the advances Deepseek made in pre-training AI models, it remains important and resource intensive after training.
“Inference is a rather computationally intensive part,” Huang added.
Nvidia refused to provide further commentary.
Huang’s comments came almost a month after Deepseek released an open source version of the R1 model, shaking the AI market in general and appearing to have a disproportionate impact on Nvidia. The company’s share price plummeted 16.9% on one market day after the release of Deepseek news.
Nvidia’s shares closed at $142.62 per share on January 24th, according to Yahoo Finance data. The following Monday, January 27th, the stock price fell rapidly, closing at $118.52 per share. The event erased $600 billion from Nvidia’s market capitalization in just three days.
Since then, the chip company’s shares have recovered almost completely. On Friday, the shares opened at $140 per share. This means that the company was able to almost completely regain its loss of value in about a month. Nvidia reported fourth quarter revenue on February 26th. This could further address market responses.
Meanwhile, Deepseek announced on Thursday that it plans to open five code repositories as part of next week’s “Open Source Week” event.
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