Jensen Huang, the founder and CEO of Nvidia, recently shared his thoughts on a new technology called DeepSeek’s R1, which is an artificial intelligence (AI) model that has been made available for anyone to use for free. Huang believes that the market has misunderstood the impact of this development. Instead of seeing it as a threat to Nvidia’s business, he sees it as a positive step forward for the entire AI field.
In a conversation with Alex Bouzari, the CEO of DataDirect Networks, Huang expressed enthusiasm about the R1 model. He noted that when this model was introduced, many people reacted as if it signaled the end of advancements in AI, suggesting that we wouldn’t need advanced computing anymore. Huang disagrees completely with this notion. He said that rather than making computing unnecessary, the release of R1 actually highlights how far AI has come and how it is pushing the industry to change and improve.
Huang pointed out that the introduction of R1 is a reminder to everyone in the tech world that there are still many opportunities for making AI models more efficient. This, he believes, will encourage more businesses and developers to adopt AI technologies.
Despite the excitement surrounding DeepSeek’s advancements, Huang stressed that there’s still a lot of work to be done, especially when it comes to a process called “post-training.” This process is crucial for refining AI models, and it requires a lot of computing power – just the kind of power that companies like Nvidia provide.
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The conversation took place almost a month after DeepSeek released their R1 model, which had a significant negative impact on Nvidia’s stock price. When people reacted to the news that R1 had been launched, Nvidia’s stock fell dramatically, losing about 16.9% of its value in just one day. For instance, shares that were priced at $142.62 on January 24 dropped to $118.52 by January 27. Overall, this resulted in a loss of about $600 billion in Nvidia’s market value in just three days.
However, it’s worth noting that Nvidia’s stock has nearly recovered since that incident. As of last Friday, it was trading at around $140 per share, indicating that the company has almost regained the value it lost within a month. Nvidia is set to release its earnings report for the fourth quarter on February 26, which could address how the market responded to DeepSeek’s announcements.
In the meantime, DeepSeek recently announced plans to promote open-source software by releasing five sets of coding resources next week. This event is part of their “open source week” initiative to further engage with the tech community.
