Nvidia CEO Jensen Huang Dismisses DeepSeek Concerns Amidst Soaring Sales
Nvidia’s CEO Jensen Huang remains optimistic about the company’s future, asserting that the emergence of AI company DeepSeek will not disrupt sales. During a recent earnings call, Huang reiterated his belief that the DeepSeek’s innovations would not harm Nvidia’s performance, contradicting the concerns that surfaced after reports about the efficiency of DeepSeek’s R1 model, which requires fewer chips for training. This led to a significant drop in Nvidia’s stock price last month.
Despite these challenges, Huang described DeepSeek’s R1 as an “excellent innovation” that could stimulate demand for Nvidia’s products since reasoning models need substantial computational power. Huang emphasized that these models can require up to 100 times more computing resources, which positions Nvidia favorably in the market. He noted, "DeepSeek R1 has ignited global enthusiasm… nearly every AI developer is applying R1."
Nvidia’s financial results reflect Huang’s optimism. The company reported an impressive revenue of $39.3 billion for the last quarter, surpassing both its previous forecasts and Wall Street expectations. Projections for the next quarter anticipate even higher revenue, estimated at around $43 billion. Nvidia’s data center sales nearly doubled in 2024, increasing to $115 billion.
During the earnings call, Huang highlighted the company’s latest Blackwell chip, tailored for reasoning applications, noting extraordinary demand for it. Despite previous market apprehensions regarding DeepSeek, major tech companies like Meta, Google, and Amazon have announced substantial investments in AI infrastructure, collectively committing hundreds of billions for the coming years.
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