The founder and CEO of Nvidia, Jensen Huang, said that the market was wrong when it comes to Depseek’s technological advances and its potential to negatively affect the chip manufacturer business.
Instead, Huang called the Open -source Reasoning Model of Deepseek “incredibly exciting” while talking to Alex Bouzari, CEO of Datadirect Networks, in a pregnant interview that was published on Thursday.
“I think the market responded to R1, as in, Oh, my God. Ai is over, ”Huang told Bouzari. “You know, he fell from heaven. We no longer need to do any computing. It is exactly the opposite. Is [the] complete opposite “.
Huang said that the release of R1 is inherently good for the AI market and will accelerate the adoption of AI instead of this release, which means that the market no longer had a use for calculation resources, such as those produced by Nvidia.
“He is making everyone realize that, okay, there are opportunities for the models to be much more efficient than we think it was possible,” said Huang. “And so it is expanding, and it is accelerating the adoption of AI.”
He also pointed out that, despite the advances that Depseek made in the models of prior to training, the post-training will remain important and intensive in resources.
“Reasoning is a fairly intensive part in computation,” Huang added.
Nvidia refused to provide more comments.
Huang’s comments occur almost a month after Depseek launched the open source version of his R1 model that shook the AI market in general and seemed disproportionately to Nvidia. The price of the company’s shares collapsed 16.9% on a market day after the launch of Depseek’s news.
Nvidia shares closed at $ 142.62 per share on January 24, according to Yahoo Finance data. The next Monday, January 27, the action fell quickly and closed to $ 118.52 per share. This event cleaned $ 600 billion of Nvidia market capitalization in just three days.
The actions of the Chips company have been recovered almost completely since then. On Friday, the shares opened to $ 140 per share, which means that the company has been able to recover almost completely that value lost in approximately one month. Nvidia informs her P4 earnings on February 26 which will probably address the market reaction.
Meanwhile, Depseek announced Thursday that it plans to open the five code repositories as part of an open source week “next week.