Nvidia CEO: DeepSeek’s R1 Open-Source Reasoning Model is a Game-Changer for AI
Market Misunderstood DeepSeek’s Impact on Nvidia’s Business
Nvidia founder and CEO Jensen Huang has spoken out about the impact of DeepSeek’s R1 open-source reasoning model on the company’s business, saying that the market got it wrong. In a pre-recorded interview with Alex Bouzari, CEO of DataDirect Networks, Huang described the model as "incredibly exciting" and believes it will accelerate the adoption of AI, rather than making computational resources like Nvidia’s obsolete.
Huang’s Perspective on R1
"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. It’s [the] complete opposite." He emphasized that the release of R1 is inherently good for the AI market, expanding opportunities for more efficient models and accelerating adoption.
Post-Training AI Remains Resource-Intensive
Huang noted that, despite advancements in pre-training AI models, post-training will remain important and resource-intensive. "Reasoning is a fairly compute-intensive part of it," he added. This means that Nvidia’s business will continue to be relevant, even with the rise of R1.
Nvidia’s Stock Performance
Nvidia’s stock price plummeted 16.9% in one market day following the release of DeepSeek’s R1 model, wiping out $600 billion from the company’s market capitalization. However, the stock has almost fully recovered since then, with a market opening price of $140 a share.
DeepSeek’s Open-Source Week
DeepSeek announced plans to open source five code repositories as part of an "open source week" event next week. This move is likely to further accelerate the development of AI models and applications.
Conclusion
Jensen Huang’s comments offer a more optimistic perspective on the impact of DeepSeek’s R1 model on Nvidia’s business. Rather than signaling the end of computational resources, R1 is seen as a catalyst for further innovation and growth in the AI market.
Frequently Asked Questions
Q: What did Jensen Huang say about R1?
A: Huang described R1 as "incredibly exciting" and believes it will accelerate the adoption of AI, rather than making computational resources like Nvidia’s obsolete.
Q: How did Nvidia’s stock perform after the release of R1?
A: Nvidia’s stock price plummeted 16.9% in one market day, wiping out $600 billion from the company’s market capitalization. However, the stock has almost fully recovered since then.
Q: What is DeepSeek’s plan for open-sourcing its code?
A: DeepSeek announced plans to open source five code repositories as part of an "open source week" event next week.
