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.
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.
U.S. Commerce Department bureaus have reportedly issued a blanket ban on the Chinese AI model DeepSeek for use on government-furnished equipment, according to sources and a mass email seen by Reuters.
Chinese retail investors are increasingly turning to DeepSeek and other artificial intelligence tools to navigate the stock market, marking a significant shift from last year’s government crackdown on computer-driven quantitative trading.
The Trump administration is reportedly considering a ban on the Chinese AI chatbot DeepSeek from U.S. government devices over national-security concerns, according to a source familiar with the matter.
Elon Musk-owned artificial intelligence firm xai has acquired a 1-million-square-foot property in southwest Memphis, the Greater Memphis Chamber reported on Friday.
Protesters and police clashed in Nepal leaving two dead and 17 injured as demonstrators rallied to demand the return of the constitutional monarchy.
U.S. Vice President JD Vance criticized Denmark’s handling of Greenland’s security during a visit to the U.S. base at Pituffik.
U.S. Vice President JD Vance visited Greenland’s Pituffik military base amid renewed calls from President Trump for U.S. control of the island. The trip sparked protests, with Greenland’s leader calling it a "lack of respect." Trump insists Greenland is vital for U.S. security and global stability.
Royal Australian Air Force (RAAF) pilots, monitoring a Chinese navy warship as it navigated Australian waters, were alerted to a live-fire exercise via a civilian radio broadcast, defense officials revealed on Tuesday.
Russian forces carried out a drone attack on Ukraine’s second-largest city, Kharkiv, late Wednesday, injuring at least twenty one people and causing structural damage, according to Ukrainian officials.
As the world shifts toward clean energy at an ever-accelerating pace, large economies are scrambling to secure reliable supply chains for rare earth minerals. These minerals, once seen as mere industrial components, have become a political tool in the global power struggle
A devastating overnight drone attack on Kyiv, attributed to Russian forces, resulted in the deaths of three people, including a five-year-old child, and left ten others injured.
The Trump administration is importing eggs from Türkiye and South Korea to address shortages and record-high prices caused by a severe bird flu outbreak.
The model aims to enhance Alibaba’s presence in the generative AI sector and is available as open-source.
OpenAI has asked the US government to permit AI companies to use copyrighted material for training to maintain America's leadership in AI development, as part of a proposal aligned with President Trump's upcoming "AI Action Plan."
Kim Jong Un watched tests of new AI drones and wants to increase the production
South Korean chipmaker SK Hynix said Thursday that some customers have accelerated orders in anticipation of potential U.S. tariffs on semiconductors, contributing to improved market conditions. However, the company cautioned that it remains unclear whether this trend will persist.
Despite its dominance in industrial robotics, China faces challenges in the race for humanoid robots due to its reliance on foreign technology and U.S. trade restrictions.
Protesters and police clashed in Nepal leaving two dead and 17 injured as demonstrators rallied to demand the return of the constitutional monarchy.
U.S. Vice President JD Vance criticized Denmark’s handling of Greenland’s security during a visit to the U.S. base at Pituffik.
U.S. Vice President JD Vance visited Greenland’s Pituffik military base amid renewed calls from President Trump for U.S. control of the island. The trip sparked protests, with Greenland’s leader calling it a "lack of respect." Trump insists Greenland is vital for U.S. security and global stability.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment