TECH NEWS – Jensen Huang, CEO of Nvidia, has responded after a surprisingly long time to the fact that Chinese artificial intelligence has thoroughly eroded a large chunk of Nvidia’s stock market value.

The release of DeepSeek’s R1 AI models was a huge milestone for the AI markets, but it was an ugly day for the company. The company’s market value fell by $600 billion and Nvidia CEO Jensen Huang lost more than 20% of his net worth, clearly showing that investors were not happy with DeepSeek’s emergence. In an interview, however, Huang expressed his excitement about DeepSeek’s milestone, but believes that investors misjudged the AI market.

“From an investor perspective, there was a mental model that the world was pre-training and then inference. And the inference was: you ask an AI a question and you get an answer immediately. I don’t know whose fault it is, but obviously that paradigm is wrong. It is so incredibly exciting. The energy around the world as a result of R1 becoming open source is incredible,” Huang said.

This does not explain why the share sales happened: around the training of DeepSeek R1, we heard that only $5 million was spent on it, and this raised the perception that the demand for AI computing power in the markets is artificial. However, DeepSeek’s “low training cost” was not so low, as it turns out that the Chinese company is using over $1 billion of AI hardware, which means they also need massive computing power.

However, DeepSeek has been able to gain a foothold among robust, “open source” AI models, allowing developers to participate in the evolution of the product and allowing organizations and individuals to fine-tune the model as they wish, allowing it to run in localized AI environments and make the best use of hardware resources.

After that, we look forward to Nvidia’s quarterly earnings report on February 26th…

Source: WCCFTech