Expensive AI chips still the way to go for Nvidia as CEO Jensen Huang hits back at DeepSeek success
Mar 19, 2025 - businesstoday.in
Nvidia CEO Jensen Huang defended the necessity of Nvidia's high-priced AI chips, countering skepticism following the success of DeepSeek, a Chinese AI company that utilized older, less costly chips. At a conference described as "the Super Bowl of AI," Huang emphasized the growing computational demands of autonomous AI, which require significantly more resources than previously estimated. Despite Nvidia's substantial sales of $130.5 billion last year, primarily from AI chips, investor confidence wavered, leading to a 3.4% drop in Nvidia shares.
Huang addressed concerns about DeepSeek by highlighting Nvidia's Dynamo open-source software, which could significantly enhance the performance of DeepSeek's R1 model. Ian Buck, Nvidia's vice president, noted that Dynamo could boost performance by 30 times using the same number of GPUs for reasoning models. This development underscores Nvidia's commitment to maintaining its leadership in AI hardware, despite the shift in AI companies' focus from data-heavy training to inference-based models.
Key takeaways:
Nvidia CEO Jensen Huang defended the need for Nvidia's expensive AI chips, emphasizing the increased computational demands of agentic AI.
DeepSeek's success with older, less expensive AI chips raised questions about the necessity of Nvidia's hardware.
Nvidia's Dynamo open source software could significantly enhance the performance of models like DeepSeek's R1.
Despite Huang's presentation, Nvidia shares fell 3.4% as investors remained unimpressed.
