Nvidia CEO Jensen Huang Challenges DeepSeek's AI Efficiency Claims, Predicts Surge in Computing Demand

Nvidia's Jensen Huang on why DeepSeek's new model will need '100 times more computing'

Nvidia CEO Huang: DeepSeek's R1 reasoning AI consumes 100x more compute than non-reasoning AI CEO Jensen Huang discussed the impact of Chinese startup DeepSeek's new artificial intelligence model in a Wednesday interview with CNBC's Jim Cramer at Nvidia's annual GTC conference. Huang asserted that the groundbreaking model will actually require more computation than many in the industry thought. According to Huang, DeepSeek's R1 model is "fantastic" because it is "the first open-sourced reasoning model." He explained that the model breaks down problems step-by-step, is able to come up with different answers, and it can verify whether its answer is correct. "This reasoning AI consumes 100 times more compute than a non-reasoning AI," he said. "It was exactly the opposite, it was the exact opposite conclusion that everybody had." In late January, DeepSeek's model triggered a massive sell-off in AI stocks, as investors feared the model could perform as well as top competitors using less energy and money. Nvidia plummeted 17% in one session to lose close to $600 billion, the largest ever single day drop for a U.S. company. Huang also spoke about some of what his company has revealed so far at its conference, including new AI infrastructure for robotics and for the enterprise, highlighting partnerships with companies like Dell, HPE, Accenture, ServiceNow and CrowdStrike. He reflected broadly on the AI boom, noting the way hype has shifted from purely generative AI to reasoning models. He also predicted that the world's computing capital expenditures seems on track to reach a trillion dollars by the end of the decade, and that the majority of that money will be used for AI. "So, our opportunity as a percentage of a trillion dollars by the end of this decade is, is quite large," Huang said. "We've got a lot of infrastructure to build."

Nvidia CEO refutes DeepSeek's AI model impact analysis, anticipates increased hardware demand By Investing.com

Investing.com -- Nvidia Corp . (NASDAQ:NVDA), a leading player in the artificial intelligence (AI) sector, has argued that the advent of new AI models capable of generating complex responses will only amplify the demand for computing infrastructure. Jensen Huang, the Chief Executive Officer of Nvidia, addressed concerns raised by Chinese startup DeepSeek regarding their R1 AI model. DeepSeek had suggested that future software advancements could lead to a reduced need for chips and powerful servers. Huang refuted these claims in a meeting with investors at Nvidia's GTC conference in San Jose, California. He stated that the interpretation of the R1 model's impact was entirely incorrect. According to Huang, the computational demands for such advanced AI software are considerably higher than what DeepSeek projected. The Nvidia CEO's statement indicates a potential increase in demand for the company's products, which are integral to the computing infrastructure required by complex AI models. This is in direct contradiction to DeepSeek's prediction of a reduced need for such hardware in the future.