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Nvidia CEO Jensen Huang shrugs off DeepSeek as sales soar
Nvidia's CEO Jensen Huang remains optimistic about the company's future despite concerns over DeepSeek's impact on sales. While DeepSeek's R1 model raised speculation about lower chip demand, Huang stated it would actually boost compute demand. Nvidia reported record revenues of $39.3 billion, suggesting continued growth, with expectations for $43 billion next quarter and a strong market for AI chips.
Key points
- Jensen Huang claims DeepSeek's R1 model won't negatively impact Nvidia's sales.
- DeepSeek's R1 model, despite requiring fewer chips for training, is seen as an innovation that could increase overall compute demand by 100 times or more.
- Nvidia's Q4 revenue reached $39.3 billion, surpassing projections and Wall Street estimates.
- Future revenue expectations are set at around $43 billion for the next quarter.
- Data center sales nearly doubled to $115 billion in 2024 and grew by 16% from the previous quarter.
- Huang emphasizes the strong demand for Nvidia's latest Blackwell chip, custom-built for reasoning.
- Major tech companies such as Meta, Google, and Amazon have made significant AI infrastructure investments.
Why it matters
- In 2025, the AI industry continues to grow, with companies investing heavily in AI infrastructure.
- The emergence of reasoning models is significant as they require more compute power, benefiting chipmakers like Nvidia.
- Previous fluctuations in Nvidia's stock have been linked to technological shifts in AI, showcasing the volatility in tech investments.
- The competitive landscape in AI development requires constant innovation and investment to keep pace with industry leaders.
Despite past concerns over DeepSeek's impact, Nvidia's robust revenue growth and optimistic forecasts highlight the company's strong position in the expanding AI chip market. The optimism reflects broader trends of increasing demand for AI infrastructure across technology giants.