NVIDIA CEO Speaks Out About Chinese AI DeepSeek for the First Time

It's been almost a month since NVIDIA shares crashed due to the Chinese AI model DeepSeek, and the company's CEO Jensen Huang has finally commented on what happened. According to him, investors simply didn't understand the situation.

Recall that the January release of the R1 model from DeepSeek led to a sharp drop in NVIDIA's market value by $600 billion. The stumbling block was the low development costs (about $5 million) and the open source code of the competitor DeepSeek. The neural network immediately attracted all the attention of investors to itself as a more promising project. But as Jensen Huang said in a recent interview with Business Insider, they rushed to conclusions.

In short, investors considered the costs of training AI too unreasonable, since DeepSeek coped with the same tasks for $5 million. However, analysts later said that the real cost of training the breakthrough model was about $1 billion.

However, the head of NVIDIA admitted that DeepSeek succeeded in releasing the model as open source. In this case, it can be modified without restrictions by third-party specialists and other organizations, implementing it in their products.

More details about the situation around DeepSeek and the collapse of NVIDIA shares were told in our special article.