Nvidia CEO Jensen Huang is confident that DeepSeek won't hurt sales. DeepSeek is a tool that detects and reports on deepfakes, which are AI-generated videos or images that are designed to be misleading.
Jensen Huang has maintained his confidence in Nvidia's sales despite the potential impact of DeepSeek. He believes that the tool will actually help to increase trust in AI-generated content.
The AI industry is rapidly evolving, and Nvidia is at the forefront of this change.
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Nvidia CEO Reacts
Nvidia CEO Jensen Huang is as bullish as ever about his company's future, repeating his sentiments that DeepSeek won't impact sales.
Nvidia reported another record-breaking quarter, with revenue reaching $39.3 billion, exceeding both its own projections and Wall Street estimates.
Huang touted R1 as an "excellent innovation", emphasizing that it and other 'reasoning' models are great news for Nvidia since they need so much more compute.
Current demand for Nvidia's latest Blackwell chip is "extraordinary", according to Huang.
Nvidia's data center sales nearly doubled in 2024 to $115 billion and rose 16% from the previous quarter.
Huang highlighted how DeepSeek could enhance other AI models since they can copy the LLM's homework from its open-source code.
Nvidia's investors may be hoping DeepSeek's innovation will drive demand for Nvidia's GPUs from other developers, making up for the loss.
Demand for Blackwell is amazing as reasoning AI adds another scaling law — increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter.
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DeepSeek Impact
DeepSeek's open-source AI model shaved nearly $600 billion off Nvidia's market cap in January, but Nvidia CEO Jensen Huang sees it as a catalyst for the AI boom's momentum.
The model's cost-efficiency sparked a sell-off, but Huang argues that post-training methods needing robust computing power keep Nvidia's chips vital.
Huang hailed DeepSeek's global energizing effect, noting that the energy around the world as a result of R1 becoming open-sourced is "incredible".
The market's knee-jerk reaction was largely reversed as Nvidia's stock clawed back value, but it underscored a broader anxiety Huang has been battling for months: that model scaling might be faltering.
Huang has maintained since November that scaling thrives, simply shifting from training to inference and now post-training, where computational heft remains king.
Huang dismissed the idea that DeepSeek is a threat, instead framing it as a spark igniting global AI excitement.
The industry's focus isn't just on pre-training models, but hinges critically on post-training methods—processes that demand substantial computing power to refine AI's ability to reason and predict.
Here are some key stats on the impact of DeepSeek:
- Nearly $600 billion shaved off Nvidia's market cap in January
- 20% reduction in Jensen Huang's personal net worth
- Market's knee-jerk reaction was largely reversed
Nvidia's Confidence
Nvidia CEO Jensen Huang is unphased by the emergence of DeepSeek, a Chinese AI breakthrough that shook the market. He sees it as a catalyst for growth, not a threat.
Huang has years of experience under his belt, which gives Nvidia a unique identity in the industry. This experience, combined with a deep ecosystem and continued innovations, sets Nvidia apart from its competitors.
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Analysts agree that Nvidia's confidence is well-placed, with some stating that nothing threatens the company's monopoly in AI and gaming. Huang's stance is clear: he believes that post-training methods, which demand substantial computing power, will continue to drive demand for Nvidia's technology.
Nvidia's market share may be affected by DeepSeek, but Huang isn't worried. He's focused on the long game, where post-training methods become increasingly important. This shift in focus could actually benefit Nvidia, as it positions the company for continued growth and success.
In short, Nvidia's confidence is rooted in its experience, ecosystem, and continued innovations.
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Nvidia's Perspective
Nvidia CEO Jensen Huang is as confident as ever about his company's future, despite the recent disruption caused by DeepSeek. He believes that DeepSeek's innovation will actually boost demand for Nvidia's GPUs.
Huang sees post-training as the most important part of intelligence, where models learn to tackle complex problems, and Nvidia's chips remain indispensable for this process. He argues that post-training methods need robust computing power, which is where Nvidia's technology shines.
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The market's initial reaction to DeepSeek's R1 model was a sell-off, but Huang hailed its global energizing effect, insisting that it's a catalyst for the AI boom's momentum. He even called DeepSeek's innovation "excellent" and noted that nearly every AI developer is applying R1.
Nvidia's sales show no signs of slowing down, with a record-breaking quarter and revenue reaching $39.3 billion. The company expects revenue for the next quarter to be up again, to around $43 billion.
Here are some key points to summarize Nvidia's perspective on DeepSeek:
- Huang sees post-training as the most important part of intelligence, where Nvidia's chips remain indispensable.
- Nvidia's sales show no signs of slowing down, with a record-breaking quarter and revenue reaching $39.3 billion.
- Huang hailed DeepSeek's innovation as "excellent" and noted that nearly every AI developer is applying R1.
- Nvidia expects revenue for the next quarter to be up again, to around $43 billion.
Nvidia's confidence in its technology and its ability to adapt to the changing AI landscape is a testament to the company's strength and resilience.
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