Nvidia CEO Jensen Huang believes the market has misjudged the potential impact of DeepSeek’s R1 open source reasoning model on the chip industry. Huang emphasized the model’s potential to boost AI adoption rather than diminishing the need for computing resources.
In an interview, Huang stated that the release of R1 has spurred recognition of the potential for more efficient AI models. This realization is expected to accelerate the adoption of AI, as organizations seek ways to optimize their models.
While acknowledging DeepSeek’s advancements in pre-training AI models, Huang stressed the ongoing importance of post-training, which remains computationally intensive. Nvidia declined further comment on the matter.
Huang’s remarks follow the release of R1 by DeepSeek, which sparked a 16.9% drop in Nvidia’s stock price. However, the company’s stock has since recovered significantly, demonstrating the market’s evolving understanding of the potential impact of DeepSeek’s technology.
Nvidia’s upcoming Q4 earnings report on February 26 is likely to provide further insights into the company’s perspective on market dynamics. Additionally, DeepSeek’s announcement of open-sourcing five code repositories as part of its “open source week” is expected to provide more information about the company’s technology and its implications for the industry.
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