Santa Clara, CA, February 17, 2025 – Nvidia founder and CEO Jensen Huang dismissed market concerns over DeepSeek’s recent release of its R1 open source reasoning model, arguing that the technological advancement will ultimately benefit the broader AI ecosystem rather than harm Nvidia’s business.
In a pre-recorded interview with Alex Bouzari, CEO of DataDirect Networks, Huang noted that initial market reactions to the R1 model were based on a misunderstanding of its implications. “I think the market responded to R1, as in, ‘Oh my gosh. AI is finished,’” Huang said. “You know, it dropped out of the sky. We don’t need to do any computing anymore. It’s exactly the opposite.” He emphasized that the release of the model is inherently positive, as it highlights opportunities for more efficient AI models while reaffirming the critical role of compute resources—especially in post-training processes, which remain resource-intensive.
The comments come in the wake of a dramatic market response following DeepSeek’s announcement nearly a month ago. Nvidia’s stock price plunged 16.9% in one trading day, falling from $142.62 per share on January 24 to $118.52 on January 27, an event that wiped approximately $600 billion off its market capitalization. However, the stock has almost fully recovered, with Friday’s opening price reaching around $140 per share.
Huang’s remarks suggest that DeepSeek’s advancements are expected to accelerate AI adoption rather than signal a reduced need for high-performance computing. “It’s making everybody take notice that, okay, there are opportunities to have the models be far more efficient than what we thought was possible,” he added.
DeepSeek’s open source R1 model, which has been met with both excitement and concern in the industry, is part of a broader trend of increasing openness in AI development. The company announced plans to open source five code repositories as part of an “open source week” event scheduled for next week.
Nvidia is set to address these developments further in its upcoming Q4 earnings report on February 26, a report that is likely to provide additional insights into the company’s long-term outlook amid rapid changes in the AI landscape.
Five skiers were killed in a pair of avalanches in Austria’s western Alpine regions on Saturday, with two others injured, one critically....
Russian President Vladimir Putin has been invited to join his U.S. counterpart's Gaza Board of Peace, the Kremlin says. Moscow says it is studying the...
The German and French finance ministers said on Monday that European powers would not be blackmailed and that there would be a clear and united respon...
An explosion at a steel plate factory in China's northern region of Inner Mongolia killed two people and injured 84, Inner Mongolia Baotou Steel Union...
Japan’s Prime Minister Sanae Takaichi said on Monday (19 January) she would call a snap national election on 8 February, seeking a popular mandate f...
Chinese AI startup DeepSeek has introduced its newest model, DeepSeek-V3.2-Speciale, claiming it can perform some tasks as well as the latest models from Google DeepMind and OpenAI.
Germany’s data protection commissioner has called on Apple and Google to block the Chinese AI app DeepSeek from their platforms over illegal data transfers and privacy concerns.
Meta CEO Mark Zuckerberg has launched a 'superintelligence' project to take artificial intelligence to a new level. According to Bloomberg, Zuckerberg is assembling an exclusive team of leading AI experts to create technology that surpasses human-level capabilities.
South Korea’s data protection authority said Thursday that Chinese AI startup DeepSeek transferred user information and prompt content abroad without user consent during its initial launch in the country.
Italian Prime Minister Giorgia Meloni said on Saturday (17 January) that concerns over security in Greenland should be addressed within the framework of NATO, describing a ground military intervention as highly unlikely.
Elon Musk is seeking up to $134 billion from OpenAI and Microsoft, arguing that the companies profited unfairly from his early support of the artificial intelligence firm, according to a court filing made public on Friday.
European leaders voiced growing alarm on Sunday over U.S. threats to impose tariffs on eight NATO allies, warning the move could destabilize transatlantic relations and heighten tensions in the Arctic.
Trump administration officials held months-long discussions with Venezuela’s hardline interior minister Diosdado Cabello before the U.S. operation that led to the seizure of President Nicolás Maduro, according to multiple people familiar with the matter.
Syrian President Ahmed al-Sharaa has signed a decree recognising Kurdish language rights, as government forces advanced against U.S.-backed Kurdish-led fighters despite U.S. calls for restraint.
New modelling suggests Mars shapes some of Earth’s long-term orbital rhythms, including shorter eccentricity cycles and a 2.4-million-year pattern that vanishes without its gravitational pull.
Ashley St. Clair, mother of one of Elon Musk’s children, has filed a lawsuit against Musk’s company xAI, alleging that its AI tool Grok generated explicit images of her, including one portraying her as underage.
Britain’s Royal Navy has successfully conducted the maiden flight of its first full-sized autonomous helicopter, designed to track submarines and carry out high-risk maritime missions amid rising tensions in the North Atlantic.
Dubai is set to launch commercial air taxi services by the end of the year, according to the emirate’s Roads and Transport Authority (RTA).
Astronomers have observed a white dwarf - a highly compact Earth-sized stellar ember - that is creating a colourful shockwave as it moves through space, leaving them searching for an explanation.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment