Recently, Nvidia CEO Huang Renxun publicly expressed his views on the overreaction of the market. He expressed unique insights into the release of the R1 model by Chinese AI startup DeepSeek, believing that this incident will not only not pose a threat to Nvidia, but will instead become a major benefit to promote the development of AI technology. Huang Renxun emphasized that the advent of the R1 model is actually an important breakthrough in the field of AI. It will accelerate the popularization and application of AI technology and ultimately benefit the entire industry, including Nvidia.
The cause of the incident dates back to January this year, with DeepSeek releasing its latest R1 model. The market generally believes that the efficiency of the R1 model means that the future development of AI may no longer require such huge computing resources. This view directly led to Nvidia's stock price plummeting by 16.9% in a single day, and its market value instantly evaporated by tens of billions of dollars. This shows the panic in the market.
However, Huang Renxun made it clear in a recent interview that the market's reaction was too pessimistic. He pointed out that the release of the R1 model does not mean the end of AI technology, but an opportunity for the further development of AI technology. Huang Renxun believes that the efficiency of the R1 model just proves the huge potential of the AI model in terms of efficiency, which will inspire more companies and developers to participate in the AI field and promote the commercialization of AI technology.
Huang Renxun further explained that the release of the R1 model demonstrates a significant improvement in efficiency of the AI model, which will have a positive impact on the entire AI ecosystem. He emphasized that although the efficiency of the model has been improved, the demand for computing power in AI development is still huge, especially at the critical stage of model reasoning and solving practical problems, the demand for high-performance computing resources will only become more and more vigorous.
Although DeepSeek has made significant progress in pre-training, Huang Renxun also pointed out that post-training is still a key link in the development of AI and is a computing-intensive process. He added that the inference process still requires a large amount of computing resources, which means that Nvidia's computing resources (such as GPUs) still have an irreplaceable position in the AI ecosystem.
Huang Renxun's statement undoubtedly injected a "software of the heart" into the market. He once again emphasized Nvidia's core values and long-term development potential in the AI era. With the continuous advancement of AI technology, Nvidia's high-performance computing platform will continue to play an important role and become the cornerstone of promoting the development of AI technology.