The DeepSeek R1 model, which caused a major stir in the AI world, led to a sharp decline in Nvidia’s market value. However, Nvidia CEO Jensen Huang views the situation from a different perspective. Is DeepSeek’s move truly a threat to Nvidia, or is it a new opportunity for the industry? Here are the details…
Nvidia CEO evaluates DeepSeek’s AI success
DeepSeek’s R1 AI model created a significant disruption in the AI sector. The claim that the model was trained with only a $5 million budget led investors to believe that AI hardware demand would decrease, causing Nvidia’s market value to plummet by $600 billion. However, the reality was quite different. It was revealed that DeepSeek had invested over $1 billion in AI hardware.
In this process, Nvidia CEO Jensen Huang criticized the reactions of investors, stating that the fundamental perception of the AI market was wrong. According to Huang, the belief that AI is solely about model training and inference was misleading. DeepSeek’s open-source model approach brought innovations that marked an important turning point for the industry.
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DeepSeek’s success is making AI models more accessible, enabling companies to develop more flexible solutions on their own systems. This is creating a new competitive environment in the AI world and shows that Nvidia needs to rethink its market strategies.
All eyes are now on Nvidia’s financial report to be released on February 26. This report will clarify how the company has been affected by DeepSeek’s developments and what its plans for the future are.
What do you think about this? Feel free to share your thoughts in the comments below.
