Nvidia CEO Jensen Huang says market got it wrong about DeepSeek’s impact

Nvidia CEO Jensen Huang discusses R1 model's positive impact on AI market.

: Nvidia CEO Jensen Huang claims the market misjudged DeepSeek’s R1 model's impact on Nvidia. He sees R1 as an advancement that enhances AI adoption. Despite an initial stock drop due to R1's release, Nvidia almost fully recovered. Huang stresses the continued need for compute-intensive AI post-training.

Nvidia CEO Jensen Huang argued that the market overreacted to DeepSeek’s R1 open source reasoning model, mistaking it as detrimental to Nvidia. He praised the R1 model as exciting and beneficial for AI, highlighting its potential to make AI models more efficient and accelerate AI adoption.

Huang explained that while R1 showcases advancements in pre-training AI models, the need for intensive compute resources remains critical, particularly for post-training reasoning. His insights were part of a discussion with Alex Bouzari from DataDirect Networks in a released interview.

Following R1's release, Nvidia’s stock plunged 16.9%, causing a $600 billion market cap loss in three days, but it has since nearly recovered. Nvidia anticipates addressing the incident further in their upcoming Q4 earnings report, as DeepSeek plans to release more resources as part of an open source event.

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