Jensen Huang, Founder and CEO of Nvidia, said that the latest technological developments of China -based Deepseek’s latest technological developments, and especially the market perception that the Open -source R1 is a threat to the company, is incorrect. Huang said that Deepseek’s progress in the field of artificial intelligence is actually exciting developments that move the sector forward.
Huang, DataDadirect Networks CEO Alex Bouzari in an interview with Alex Bouzari, said Deepseek’s R1 model has aroused a great impact in the sector. However, he stressed that this echo brought some misunderstandings.
Huang said that the market’s reaction to the R1 model created an unnecessary concern. “The reaction of the market was: ‘Oh my God, artificial intelligence was completed. We no longer need any calculation power. ‘ This is on the contrary. The truth is that artificial intelligence will expand and grow further. ”
According to CEO, Deepseek’s R1 model has shown that artificial intelligence models can become more efficient than they thought, which should be considered as a development that will accelerate the adoption of artificial intelligence. Huang said that these developments did not pose a threat to chip manufacturers such as Nvidia, but on the contrary, the sector entered a period in which the sector needs more resources.
In particular, the training of artificial intelligence models and the additional processes that are performed afterwards still require a great calculation power, Huang said, “Reasoning is a process that requires a very intense calculation power,” he said that the production of chip will maintain its importance in the age of artificial intelligence.
Nvidia did not make any additional comments other than Huang’s statements.
Huang’s statements came almost a month after Deepseek’s R1 was presented as open source. While this development generally affected the artificial intelligence sector, a hard blow to Nvidia’s market value. After Deepseek’s announcement, Nvidia shares fell by 16.9 %in one day and suffered a significant loss.
Nvidia shares were crashed by deepseek effect
According to Yahoo Finance data, Nvidia’s shares closed for $ 142,62 on January 24, while on Monday, January 27, it fell rapidly and traded at $ 118.52. This sudden decline led to the deletion of $ 600 billion in three days from Nvidia’s market value.
However, the company’s shares recovered rapidly. At the opening of the market on Friday, Nvidia shares returned to $ 140 and compensated for almost all their losses. The fourth quarter financial report, which the company will announce on February 26, is expected to share more details about its market reaction.
Meanwhile, Deepseek made a new announcement and announced that it will share five different code deposits as open source as part of the “Open Source Week” event this week. This step is considered as an attempt to expand the company’s open source contributions in the field of artificial intelligence.