Nvidia CEO Jensen Huang addressed investor misconceptions regarding DeepSeek’s AI advancements. The Chinese company’s R1 model, built on less powerful chips, sparked fears that advanced AI could require less investment in computing infrastructure, contributing to a major sell-off in Nvidia stock. Huang clarified the essential role of post-training processes in AI, emphasizing that demand for Nvidia chips remains due to their necessity for deriving conclusions from trained models. He aimed to correct the narrative that had led to investor panic and substantial losses.
Investors misinterpreted DeepSeek's AI advancements, leading to significant market reactions.
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