Nvidia’s founder and CEO Jensen Huang said the market was wrong when it comes to Deepseek’s technological developments and its ability to negatively affect Chipmaker’s business.
Instead, Huang called Deepseek’s open source ratio model while talking to Alex Bouzari, Datadirect Networks Managing Director, in a Pre-registered interview released on Thursday.
“I think the market responded to R1, as well as to,” Oops. The AI is over, “Huang told Bouzari.” You know, it fell from the sky. We no longer need to do information technology. It’s just the opposite. Of [the] Complete the opposite. ”
Huang said that R1 release is inherently good for the AI market and would accelerate AI’s adoption as opposed to this liberation which means that the market no longer used for computing resources – such as those produced by Nvidia.
“It makes everyone aware that, okay, there are opportunities to have the models to be much more effective than we thought it was possible,” Huang said. “And so extends and accelerates AI’s adoption.”
He also points out that, despite Deepseek developments made on AI models before training, after training will remain significant and intense.
“Reasoning is a pretty computational part of it,” Huang added.
Nvidia refused to provide further comments.
Huang’s comments come almost a month after the release of the open source of the R1 model, which shocked the AI market in general and seemed to disproportionately affect NVIDIA. The company’s shares is 16.9% on one day of the market after Deepseek news was released.
Nvidia’s stock closed at $ 142.62 per share on January 24, according to Yahoo Finance. Next Monday, January 27, the stock fell quickly and closed to $ 118.52 per share. This event wiped $ 600 billion from the ceiling of the Nvidia market in just three days.
The stock of chip company has been almost recovered since then. On Friday the stock started at $ 140 per share, which means that the company was able to regain almost completely that it lost value in about a month. Nvidia reports the Q4 earnings on 26 Februarywhich will probably face market reaction more.
Meanwhile, Deepseek announced on Thursday that it plans to open five code repositories as part of an “open source” event next week.
