Nvidia CEO Jensen Huang remains unfazed by the rise of DeepSeek R1, a new AI model that briefly rattled the market. Despite concerns that the model requires fewer chips for training, Huang argues that reasoning models like R1 actually increase demand for Nvidia’s AI chips, as they require far more computational power in real-world applications.
Speaking on Nvidia’s latest earnings call, Huang praised DeepSeek R1 as an “excellent innovation” but reaffirmed that Nvidia remains at the forefront of AI hardware. He emphasized that the global enthusiasm around R1 is driving more AI developers to adopt powerful reasoning models, which in turn fuels Nvidia’s growth.
Nvidia’s financial performance continues to break records. The company posted a record $39.3 billion in quarterly revenue, surpassing Wall Street expectations. Looking ahead, Nvidia projects $43 billion in revenue for the next quarter, further solidifying its leadership. The Data Center segment, a key driver of growth, saw sales nearly double in 2024 to $115 billion, highlighting the soaring demand for AI infrastructure.
Huang also underscored the importance of Nvidia’s Blackwell chip, designed specifically for AI reasoning models. He stated that demand for the chip is extraordinary and expects strong growth in 2025.
Despite the initial market jitters caused by DeepSeek R1, the broader AI chip industry remains on an upward trajectory. With tech giants like Meta, Google, and Amazon investing heavily in AI, Nvidia’s dominance in the AI revolution appears stronger than ever. Huang isn’t just keeping pace—he’s leading the way.
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