Jensen Huang, CEO of Nvidia Corporation NVDA, addressed investor concerns regarding the necessity of massive AI infrastructure spending during a virtual event uploaded on Thursday.
What Happened: Huang addressed the DeepSeek-led sell-off of the Nvidia shares and said, that investors misinterpreted the DeepSeek’s AI advancements. The pre-recorded event, produced by Nvidia partner DDN, was part of the launch of DDN’s new software platform, Inifinia.
The major reason for the sell-off was due to investors questioning the need for massive AI infrastructure expenditure by Big Tech firms, particularly if models can be trained with lesser computing power. This is a result of DeepSeek’s advancements in AI, which investors may have misunderstood, triggering a significant market reaction.
The Nvidia Chief clarified that the industry still demands significant computing power for post-training methods, which enable AI models to generate predictions or reach conclusions after training. He emphasized that as these methods diversify and expand, the demand for Nvidia’s computing power will also increase.