Nvidia CEO Jensen Huang dismisses DeepSeek amid soaring sales

# Nvidia # DeepSeek # earnings

Nvidia CEO Jensen Huang remains incredibly optimistic about the company's future, reiterating during Wednesday's earnings call that DeepSeek won't affect their sales. Last month, rumors that DeepSeek's R1 model needed fewer chips for training led to a historic drop in Nvidia's stock price. However, Huang praised R1 as an "excellent innovation" during the call, pointing out that it and other "reasoning" models are actually good news for Nvidia because they require significantly more computing power. "Reasoning models can use up to 100 times more compute, and future models will need even more," Huang explained. "DeepSeek R1 has sparked global excitement. It's a fantastic innovation, but more importantly, it has made a world-class reasoning AI model available to everyone. Almost every AI developer is now using R1." Nvidia's sales continue to soar, with the company reporting a record-breaking quarter with revenues hitting $39.3 billion—surpassing both their own forecasts and Wall Street's expectations. They also projected a rise in next quarter's revenue to about $43 billion. In 2024, Nvidia's data center sales nearly doubled to $115 billion, a 16% increase from the last quarter, according to their earnings report. Huang highlighted Nvidia's new Blackwell chip, designed specifically for reasoning tasks, and noted that the demand for it is "extraordinary." "We're set to see strong growth in 2025," Huang confidently stated. Despite the recent panic over DeepSeek, the AI chip market remains hot. Since then, Meta, Google, and Amazon have announced huge investments in AI infrastructure, totaling hundreds of billions of dollars in the coming years.

Related article

Comments (20)