Nvidia CEO Jensen Huang discussed the impact of Chinese startup DeepSeek’s new AI model in a recent interview with CNBC. The R1 model, which is “fantastic” because it’s the first open-sourced reasoning model, consumes 100 times more compute than non-reasoning AI models.
Huang’s comments sparked a massive sell-off in AI stocks, including Nvidia, which plummeted 17% in one session to lose nearly $600 billion. However, Huang also highlighted new partnerships with companies like Dell and HPE for AI infrastructure in robotics and the enterprise.
He predicted that the world’s computing capital expenditures are on track to reach a trillion dollars by the end of the decade, with most of that money being used for AI. “Our opportunity as a percentage of a trillion dollars by the end of this decade is quite large,” Huang said.
Source: https://www.cnbc.com/2025/03/19/nvidia-ceo-jensen-huang-why-deepseek-model-needs-100-times-more-computing.html