Huang Renxun responds to DeepSeek’s impact: computing power demand increases and chips are more popular

[ Gearbest Technology News]Recently, Nvidia CEO Huang Renxun said at the GTC conference that the R1 model released by Chinese artificial intelligence company DeepSeek will only increase the demand for computing infrastructure, and chips will be more popular. Therefore, it is unfounded to worry about “there may be reduced in chip demand”.

In January this year, the R1 model released by DeepSeek caused a sensation in the market. The model took only two months to develop, cost less than $6 million, and only used about 2,000 Nvidia chips. However, R1’s performance in key areas is comparable to OpenAI’s strongest inference model o1. This has caused many people to question the significance of many large American technology companies investing a lot of money in artificial intelligence models and data centers. Affected by this, Nvidia’s stock price plummeted by nearly 17% on January 27, and last week the stock price fell to its lowest level since September last year.

However, several Nvidia’s major customers recently reiterated their spending plans for artificial intelligence in their financial reports. Some media analysis found that the actual spending of several largest data center operators grew faster than expected.

At the analyst meeting, it was mentioned that some of Nvidia’s customers are developing self-developed chips in an attempt to replace Nvidia’s products. For example, Google is working with Broadcom to develop ASIC chips. In response, Huang Renxun responded that many ASIC chips cannot be invested in the data center.

Huang Renxun believes that these big customers need better chips to get more revenue from their infrastructure rather than using cheaper alternatives to save costs. He also added that CEOs of these companies are very good at maths, so they don’t just focus on costs.

In the early morning of March 19, at the 2025 GTC Conference, Nvidia announced a series of AI chips and technological breakthroughs. The company is fully producing Blackwell chips and plans to transition to Blackwell Ultra in the second half of the year. The next new chip for the year will be Vera Rubin, which is expected to start shipments in the second half of 2026, when it will replace the Blackwell Ultra chip.

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