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.
Denmark has expanded its military conscription to include women, aiming to recruit more soldiers and strengthen defence amid growing security concerns...
The International Atomic Energy Agency (IAEA) said it has been informed of a potential drone attack near Ukraine’s Zaporizhzhya Nuclear Power Plant,...
U.S. President Donald Trump has said he is not confident about reaching a trade agreement with Japan, warning that talks are unlikely to succeed befor...
During his visit to the migrant detention centre in the Florida Everglades, known as “Alligator Alcatraz,” U.S. President Donald Trump claimed tha...
Pakistan has assumed the presidency of the UN Security Council for the month of July, part of its current term as a non-permanent member that began in...
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.
The U.S. economy faces a 40% risk of recession in the second half of 2025, JP Morgan analysts said on Wednesday, citing rising tariffs and stagflation concerns.
China has ramped up efforts to protect communities impacted by flood control measures, introducing stronger compensation policies and direct aid from the central government.
Severe rain in Venezuela has caused rivers to overflow and triggered landslides, sweeping away homes and collapsing a highway bridge, with five states affected and no casualties reported so far.
A malfunction in the radar transmission system at the Area Control Center in Milan suspended more than 300 flights at the weekend, across northwest Italy since Saturday evening according to Italy's air traffic controller Enav (National Agency for Flight Assistance).
Thousands of protesters rallied in Bangkok on Saturday, demanding Prime Minister Paetongtarn Shinawatra resign as political and economic tensions mount.
Over the past year, 162 asteroids flew closer to Earth than the Moon. NASA and ESA warn only 40% of dangerous objects have been identified, with one asteroid posing a small risk of hitting the Moon in 2032.
A Chinese firm has launched what it claims is the country’s first 24/7 intelligent laser weeding robot, aiming to phase out chemical herbicides and cut agricultural pollution at its source.
Set on top of Chile’s Cerro Pachón mountain, the Vera C. Rubin Observatory will soon embark on a ten-year survey, using cutting-edge technology to uncover new secrets of the universe.
Scientists at the MRC Laboratory of Medical Sciences have identified a genetic 'dimmer switch' that controls how genes turn on and off during embryo formation, offering insights for future therapies.
Japan has launched its H2A rocket for the final time, marking a shift to its next-generation H3 programme.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment