Nvidia CEO Huang Praises DeepSeek’s 'Fantastic' AI Model, Says AI Reasoning Models Require Far More Compute Power Than Expected

Nvidia CEO Jensen Huang discussed the impact of Chinese AI startup DeepSeek’s R1 model at Nvidia’s GTC conference, according to CNBC. Huang called DeepSeek’s model “fantastic” and the “first open-sourced reasoning model." The CEO emphasized DeepSeek's ability to break down problems step-by-step and verify answers. He noted that reasoning AI requires 100 times more computation than traditional AI. DeepSeek’s model triggered a sell-off in AI stocks in January, causing Nvidia to drop 17% daily and lose nearly $600 billion.