The founder and CEO of Nvidia Jensen Huang said the market was mistaken when it comes to Deepseek’s technological advances and its potential to adversely affect Chipmaker’s business.
Instead, Huang called the model of reasoning the open source of the “extremely exciting” Deepseek while talking to Alex Bouzari, CEO of Datadirect Networks, in a pre-registered interview on Thursday.
“I think the market responded to R1, as in, ‘Oh my god. He’s over,'” Huang told Bouzar. “You know, it fell from the sky. We don’t need to do any computing anymore. Exactly is exactly the opposite. It is (the opposite) complete.”
Huang said that the release of R1 is essentially good for the market and it will accelerate the approval of it compared to this omission which means that the market was no longer used for calculation resources – like those produced by Nvidia.
“It is up to everyone to notice that, okay, the models are likely to be much more efficient than what we thought was possible,” Huang said. “And so he is expanding, and accelerating the approval of him.”
He also emphasized that, despite the progress made by Deepseek in the pre-training models, after training it will remain important and with resources.
“Reasoning is a very calculated part of it,” Huang added.
Nvidia declined to provide further comments.
Huang comments come almost a month after Deepseek released the open -source version of his R1 model, which shocked the market in general and seemed to disproportionately affect Nvidia. Company shares pricing 16.9% to a market day after the release of Deepseek news.
Nvidia shares were closed with $ 142.62 share on January 24, according to data from Yahoo Finance. On Monday, January 27, the shares dropped rapidly and closed with $ 118.52. This event deleted $ 600 billion from the Nvidia market cap in just three days.
Chip company shares have been recovered almost completely since then. On Friday, shares opened with $ 140 action, which means the company has been able to almost completely recover that value lost in about a month. Nvidia reports its income on Q4 on February 26, which is likely to address the market response more.
Meanwhile, Deepseek announced on Thursday that he plans to open the source with five codes as part of an “Open Source Week” event next week.
