\n<\/p>\n
Nvidia founder and CEO Jensen Huang said the market got it wrong when it comes to DeepSeek\u2019s technological advancements and its potential to negatively impact the chipmaker\u2019s business. <\/p>\n
Instead, Huang called DeepSeek\u2019s R1 open source reasoning model \u201cincredibly exciting\u201d while speaking with Alex Bouzari, CEO of DataDirect Networks, in a pre-recorded interview that was released on Thursday<\/a>.<\/p>\n \u201cI think the market responded to R1, as in, \u2018Oh my gosh. AI is finished,\u2019\u201d Huang told Bouzari. \u201cYou know, it dropped out of the sky. We don\u2019t need to do any computing anymore. It\u2019s exactly the opposite. It\u2019s [the] complete opposite.\u201d<\/p>\n Huang said that the release of R1 is inherently good for the AI market and will accelerate the adoption of AI as opposed to this release meaning that the market no longer had a use for compute resources \u2014\u00a0like the ones Nvidia produces.<\/p>\n \u201cIt\u2019s making everybody take notice that, okay, there are opportunities to have the models be far more efficient than what we thought was possible,\u201d Huang said. \u201cAnd so it\u2019s expanding, and it\u2019s accelerating the adoption of AI.\u201d<\/p>\n He also pointed out that, despite the advancements DeepSeek made in pre-training AI models, post-training will remain important and resource-intensive. <\/p>\n \u201cReasoning is a fairly compute-intensive part of it,\u201d Huang added.<\/p>\n Nvidia declined to provide further commentary.<\/p>\n Huang\u2019s comments come almost a month after DeepSeek released the open source version of its R1 model, which rocked the AI market in general and seemed to disproportionately affect Nvidia. The company\u2019s stock price plummeted 16.9% in one market day upon the release of DeepSeek\u2019s news.<\/p>\n Nvidia\u2019s stock closed at $142.62 a share on January 24, according to data from Yahoo Finance. The following Monday, January 27, the stock dropped rapidly and closed at $118.52 a share. This event wiped $600 billion off of Nvidia\u2019s market cap<\/a> in just three days.<\/p>\n The chip company\u2019s stock has almost fully recovered since then. On Friday the stock opened at $140 a share, which means the company has been able to almost fully regain that lost value in about a month. Nvidia reports its Q4 earnings on February 26<\/a>, which will likely address the market reaction more.<\/p>\n Meanwhile, DeepSeek announced on Thursday that it plans to open source five code repositories<\/a> as part of an \u201copen source week\u201d event next week.<\/p>\n<\/div>\n