Nvidia CEO Jensen Huang discussed the significant impact of the DeepSeek issue on the company’s stock and introduced the R1 model, the first open-sourced reasoning AI that consumes 100 times more compute resources than traditional AI due to its complex reasoning capabilities. Despite the initial market reaction, Huang emphasized the transformative potential of R1 and Nvidia’s commitment to leading advancements in AI technology.
In a recent discussion, Nvidia CEO Jensen Huang addressed the impact of the DeepSeek issue on the company’s stock, which experienced a significant decline of $600 billion. Huang expressed frustration over the communication challenges during the quiet period, which prevented him from clarifying the situation to investors. He acknowledged that he could have provided reassurance about the positive implications of the DeepSeek development for Nvidia, emphasizing the importance of direct communication in such instances.
Huang introduced the R1 model from DeepSeek, highlighting its groundbreaking nature as the first open-sourced reasoning AI. He explained that R1’s unique capability lies in its reasoning process, which allows it to break down problems step by step. This model not only generates answers but also engages in self-questioning to explore multiple options and verify the correctness of its solutions, such as solving quadratic equations and checking the results.
The CEO emphasized that the reasoning capabilities of R1 come at a significant computational cost, consuming 100 times more compute resources than traditional non-reasoning AI models. This increased demand for computational power reflects the complexity and sophistication of the reasoning process that R1 employs, setting it apart from other AI systems.
Huang’s remarks suggest that despite the initial negative market reaction, the advancements represented by R1 and its reasoning capabilities are ultimately beneficial for Nvidia. He indicated that the company is committed to leading in AI technology and that innovations like R1 could pave the way for future developments in the field.
In conclusion, Huang’s insights into the DeepSeek R1 model underscore the transformative potential of reasoning AI, while also highlighting the challenges of communication during critical periods. His commitment to transparency and direct engagement with stakeholders reflects Nvidia’s dedication to maintaining investor confidence and showcasing the positive aspects of their technological advancements.