Jensen Huang, CEO of NVIDIA, gave an interview at the DDN conference, pre-recorded in advance, discussing DeepSeek for the first time. He mentioned that the market has misconceptions about the arrival of DeepSeek and the impact it will have.
Last month, DeepSeek had a significant impact on the stock of technology companies, with NVIDIA’s stock price dropping by as much as 17% in a single day. Investors believed that artificial intelligence may no longer require extensive processing resources. However, NVIDIA clarified that AI operations still require substantial processing power in the future.
Huang stated that even if future AI models require fewer resources for data training, Pre-Training still heavily relies on processing power. Moreover, Post-Training, crucial for achieving versatile artificial intelligence, will continue to demand significant processing resources.
He mentioned that the stock market’s perception of the arrival of the R1 model could signal the end of an era for AI that does not rely heavily on processing power. However, this stands in stark contrast to reality, as the R1 model will increase the adoption of AI, consequently driving up the demand for processing resources.
As of the latest data, NVIDIA’s stock price is at $134.43 per share, representing a 14% increase from the previous month’s dip due to the DeepSeek news.
Source: Business Insider
TLDR: CEO Jensen Huang discusses the misconceptions surrounding DeepSeek’s impact on the market, clarifies the ongoing need for substantial processing power in AI operations, and highlights the potential increase in resource demands with the introduction of the R1 model in NVIDIA.
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