Nvidia CEO Jensen Huang dismisses DeepSeek concerns

• Published On: 27 February 2025 at 20:32

Nvidia’s CEO Jensen Huang remains confident about the company’s future, downplaying concerns that DeepSeek’s latest AI model will impact sales.

Speaking during Nvidia’s earnings call on Wednesday, Huang reiterated that DeepSeek’s R1 model poses no threat to the chipmaker’s growth.

Last month, Nvidia’s stock price took a record plunge following speculation that DeepSeek’s R1 model required significantly fewer chips for training. However, Huang praised the model during the call, calling R1 a “excellent innovation” and highlighting its potential to drive even greater demand for Nvidia’s products.

“Reasoning models can consume 100 times more compute, and future reasoning models will consume much more compute,” Huang said. “DeepSeek R1 has ignited global enthusiasm. It’s an excellent innovation, but even more importantly, it has open-sourced a world-class reasoning AI model. Nearly every AI developer is applying R1.”

Nvidia’s financial performance shows no signs of slowing. The company reported a record-breaking quarter, with revenue reaching $39.3 billion — surpassing both its own projections and Wall Street expectations. Nvidia also forecasted further growth next quarter, predicting revenue to climb to around $43 billion.

Data center sales, a key revenue driver, nearly doubled in 2024, hitting $115 billion — a 16% rise from the previous quarter, according to Nvidia’s earnings release.

Huang emphasized Nvidia’s commitment to innovation, touting the company’s latest Blackwell chip as custom-built for reasoning AI models. “Demand for Blackwell is extraordinary,” he said, adding, “We will grow strongly in 2025.”

Despite last month’s market jitters over DeepSeek, the AI chip sector continues to boom. Tech giants including Meta, Google, and Amazon have announced massive AI infrastructure investments, collectively pledging hundreds of billions of dollars for the coming years.