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.
Israeli air strikes targeted Rafah and Khan Younis in southern Gaza, according to local media, as Israel and Hamas continued to accuse each other of v...
Israeli Prime Minister Benjamin Netanyahu said the Rafah border crossing between Gaza and Egypt will remain closed until Hamas returns the bodies of d...
Millions of Americans took to the streets for “No Kings” rallies across all 50 states, denouncing what they called the corruption and authoritaria...
Türkiye is ready to assume a de facto guarantor role if a two-state solution in Palestine is implemented, Foreign Minister Hakan Fidan said on Saturd...
President Donald Trump announced that U.S. forces have destroyed a “drug-carrying” submarine travelling toward the United States on what he descri...
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.
China has narrowed the artificial intelligence (AI) development gap with the United States to just three months in certain areas, according to Lee Kai-fu, the CEO of Chinese AI startup 01.AI.
Video from the USGS (United States Geological Survey) showed on Friday (19 September) the Kilauea volcano in Hawaii erupting and spewing lava.
At least 69 people have died and almost 150 injured following a powerful 6.9-magnitude earthquake off the coast of Cebu City in the central Visayas region of the Philippines, officials said, making it one of the country’s deadliest disasters this year.
A tsunami threat was issued in Chile after a magnitude 7.8 earthquake struck the Drake Passage on Friday. The epicenter was located 135 miles south of Puerto Williams on the north coast of Navarino Island.
The war in Ukraine has reached a strategic impasse, and it seems that the conflict will not be solved by military means. This creates a path toward one of two alternatives: either a “frozen” phase that can last indefinitely or a quest for a durable political regulation.
A shooting in Nice, southeastern France, left two people dead and five injured on Friday, authorities said.
Apple has pledged to increase its investment in China despite ongoing tensions between Washington and Beijing, CEO Tim Cook said during a meeting with China’s industry minister.
SpaceX launched its 11th Starship from Texas on 13 October, landing in the Indian Ocean ahead of testing an upgraded version for future moon and Mars missions.
From Sunday, all non-EU citizens, including British visitors, will face new biometric checks when entering and exiting the European Union under its long-delayed Entry/Exit System (EES).
The Royal Swedish Academy of Sciences announced that the 2025 Nobel Prize in Chemistry has been awarded to Susumu Kitagawa of Kyoto University, Richard Robson of the University of Melbourne, and Omar Yaghi of the University of California.
The 2025 Nobel Prize in Physics has been awarded to John Clarke, Michel H. Devoret, and John M. Martinis for their groundbreaking discovery of macroscopic quantum mechanical tunnelling and energy quantisation in electric circuits.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment