March 20, 2025 – During the annual GTC 2025 developers’ conference, Jensen Huang, CEO of NVIDIA, asserted that the unveiling of the DeepSeek-R1 model would only escalate the demand for computing infrastructure, dismissing the notion of a potential chip demand decline as unfounded.
In a Q&A session with financial analysts, Huang emphasized, “The good news is that the previous perception that R1 might decrease chip demand is entirely misplaced; in fact, future computing requirements are poised to soar even higher.”
Huang elaborated that DeepSeek is focused on inference – the AI system’s capacity to reason, a facet that will amplify computing needs, consequently fueling the demand for NVIDIA chips.
Following the conclusion of the analysts’ conference call, NVIDIA’s stock price surged by nearly 2%, valuing the company at $2.88 trillion. Reuters noted that while investors aren’t entirely convinced by Huang’s assertions, it is evident that NVIDIA is well-prepared to navigate the transformation in the AI market.
