At the GTC 2025 conference in San Jose, Nvidia Corp. NVDA announced that the company's newly released open-source software, Dynamo, can make China's DeepSeek R1 AI model 30 times faster when run on its latest Blackwell GPU chips.
What Happened: During a media briefing ahead of CEO Jensen Huang's keynote, Ian Buck, Nvidia's head of hyperscale and high-performance computing said, “Dynamo can capture that benefit and deliver 30 times more performance in the same number of GPUs in the same architecture for reasoning models like DeepSeek.”
Dynamo distributes AI workloads across up to 1,000 GPUs to boost throughput and performance. It is available now on GitHub.
See Also: Jensen Huang Loses $20B In Wealth: How DeepSeek Hit Nvidia Stock And World’s Richest People
The announcement comes just two months after DeepSeek R1 rattled investors by demonstrating how advanced AI models could reduce computing needs, leading to a $600 million drop in Nvidia's market cap.
Nvidia says Dynamo, combined with the memory-rich Blackwell Ultra chips and Grace CPUs, will allow AI data centers—what it calls "AI factories"—to run significantly more queries per second or offer premium services at higher margins.
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Why It's Important: Nvidia is looking to reframe the narrative around increasingly efficient AI models like DeepSeek, which initially raised fears of slowing demand for its chips.
Since the launch of DeepSeek in January 2025, Nvidia has experienced a significant decline in market capitalization, losing $420 billion. This decline has now been exacerbated by a lackluster response to announcements made at the GTC AI Conference.
In addition to the Dynamo software, Huang also revealed a partnership with General Motors Co. to advance autonomous vehicle technology at GTC.
He also said that Nvidia is expanding its focus on embodied AI, introducing the Groot N1 model for humanoid robots, which could potentially revolutionize the industry.
Price Action: On Tuesday, Nvidia's stock dropped 3.43%, closing at $115.43. In the pre-market session on Wednesday, it gained 1.36%, reaching $117 at the time of writing. Year-to-date, the company's shares have fallen 16.54%, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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