Nvidia CEO Jensen Huang is as bullish as ever about his firm’s future, repeating his sentiments that DeepSeek gained’t influence gross sales, he mentioned through the newest earnings name on Wednesday.
Hypothesis that DeepSeek’s R1 mannequin required far fewer chips to coach fueled a report drop in Nvidia’s inventory worth final month.
However through the earnings name, Huang touted R1 as an “wonderful innovation,” emphasizing that it and different ‘reasoning’ fashions are nice information for Nvidia since they want a lot extra compute.
“Reasoning fashions can eat 100 occasions extra compute, and future reasoning fashions will eat far more compute,” Huang mentioned. “DeepSeek R1 has ignited international enthusiasm. It’s a superb innovation, however much more importantly, it has open-sourced a world-class reasoning AI mannequin. Almost each AI developer is making use of R1.”
Nvidia’s gross sales present no indicators of slowing down. Nvidia reported one other record-breaking quarter that noticed its income attain $39.3 billion — exceeding each its personal projections and Wall Avenue estimates. And it mentioned it expects income for the following quarter to be up once more, to round $43 billion.
Nvidia’s knowledge heart gross sales practically doubled in 2024 to $115 billion and rose 16% from the earlier quarter, per the tech big’s earnings launch.
Throughout the name, Huang touted Nvidia’s newest Blackwell chip as being custom-built for reasoning and mentioned that present demand for it’s “extraordinary.”
“We’ll develop strongly in 2025,” Huang mentioned.
Certainly, regardless of final month’s panic over DeepSeek, the marketplace for AI chips exhibits no indicators of cooling off.
Since then, Meta, Google, and Amazon have all unveiled large AI infrastructure investments, collectively committing a whole lot of billions for the approaching years.
