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.
Europe is increasingly viewing the South Caucasus not as a region of frozen conflicts, but as a space of opportunity, stability and strategic connecti...
Israel will reopen Gaza’s Rafah border crossing with Egypt on Sunday (1 February), allowing limited movement of Palestinians in both directions afte...
Turkish state broadcaster TRT reported on Thursday (29 January) that six people had been arrested by Turkish authorities for allegedly conducting espi...
The Syrian government and the Kurdish-led Syrian Democratic Forces (SDF) declared a ceasefire deal on Friday (30 January) that foresees a phased integ...
Iran’s Foreign Minister Abbas Araghchi denounced the European Union's designation of the Islamic Revolution Guards Corps (IRGC) as a terrorist organ...
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.
Liverpool confirmed direct qualification to the UEFA Champions League round of 16 with a 6-0 win over Qarabağ at Anfield in their final league-phase match. Despite the setback, Qarabağ secured a play-off spot, with results elsewhere going in the Azerbaijani champions’ favour on the final matchday.
China is supplying key industrial equipment that has enabled Russia to speed up production of its newest nuclear-capable hypersonic missile, an investigation by The Telegraph has found, heightening concerns in Europe over Moscow’s ability to threaten the West despite international sanctions.
Storm Kristin has killed at least five people and left more than 850,000 residents of central and northern Portugal without electricity on Wednesday (28 January), as it toppled trees, damaged homes, and disrupted road and rail traffic before moving inland to Spain.
U.S. Secretary of State Marco Rubio said the Iranian government is likely weaker than at any point in recent history, warning that protests could reignite despite a violent crackdown that has killed thousands.
Russian President Vladimir Putin said he was ready to assist in rebuilding Syria’s war-damaged economy as the country's interim President Ahmad al-Sharaa made his second visit to Moscow in less than four months on Wednesday (28 January).
China has approved the first batch of Nvidia's H200 artificial intelligence (AI) chips after Washington allowed limited sales, paving the way for major Chinese technology companies to gain access to processors that remain far ahead of domestic alternatives.
TikTok has reached a confidential settlement in a landmark lawsuit over youth mental health, leaving Meta and YouTube to face a jury in California as the first major trial of its kind gets underway.
China has successfully completed its first metal 3D printing experiment in space, marking a significant step forward in the country’s efforts to develop in-orbit manufacturing capabilities.
A faint hand outline found in an Indonesian cave has been dated to at least 67,800 years ago, making it the oldest known example of rock art and offering new insight into early human migration across Southeast Asia.
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.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment