Nvidia CEO Shrugs Off DeepSeek Challenge as AI Chip Sales Soar
In the high stake world of AI, chips lead in the power race of dominance, the AI world wouldn’t just have NVIDIA keeping pace, rather it will also be launching a new standard altogether. While DeepSeek R1 rattles the market temporarily, Jensen Huang remains unfazed by it all, unshaken and guiding the ship with steady hands, as competitors scramble for attention. As the rest look for a foothold, Nvidia is still riding the largest growth wave one has ever seen, proving, yet again, that the AI revolution will not stop, it has merely begun.
CEO Huang keeps pushing his company’s future ahead, brushing off worries that advances made by DeepSeek threaten sales at Nvidia. Speaking to the latest earnings call on Wednesday, the founder and chief statesman of Nvidia reiterated his confidence in the company despite what people are saying about the fallout from DeepSeek’s R1 model.
Demand for the Chip:
Huang praised the new R1 model as an “excellent innovation,” saying it actually increases demand for Nvidia technology given the huge computational requirements those reasoning models need. This came after last month’s record reduction of shares of Nvidia in the market because of news that the model of DeepSeek R1 would require much fewer chips for the training.
Huang even countered such narratives and said, “Reasoning models can consume 100 times more compute, and future reasoning models will consume much more compute. 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”.
Record Breaking Sales:
Nvidia’s financial performance seems stronger than ever, even in the wake of some market jitters last month. The company announced yet another record quarter in which sales totalled approximately $39.3 billion, beating not only its internal estimates but also the estimates of Wall Street. Nvidia expects high growth to continue, projecting revenue in the next quarter of approximately $43 billion. Within the sales of Nvidia’s Data Center segment, one of the most important growth factors, sales nearly doubled in 2024 to $115 billion, a 16% increase since last quarter, emphasizing the never ending demand for AI chips.
AI Chip Market:
Nvidia’s CEO Huang asserted in the earnings call that its latest Blackwell chip is important, being custom designed for AI reasoning models. He said, “Current demand for it is extraordinary. We will grow strongly in 2025”. It is safe to say that, despite last month’s DeepSeek uproar, the wider AI chip market has continued to show a uniform pace of expansion. Nvidia’s future looks bright despite some recent turbulence. Record-breaking sales, soaring demand for AI chips, and major corporations such as Meta, Google, and Amazon pouring billions into AI infrastructure have ensured Nvidia’s commanding position at the top. With a growing AI revolution, Nvidia’s role as the very backbone of it seems assured. From what we know of the past, Jensen Huang is not the one keeping up, he’s the one who is actually going to lead.
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