NVIDIA CEO Discusses DeepSeek Selloff: High GPU Prices, Yet Profitable for Businesses

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NVIDIA’s Jensen Huang Highlights AI Cost-Effectiveness Amid Market Challenges

In a recent interview with CNBC, NVIDIA CEO Jensen Huang addressed the high cost of his company’s AI chips, asserting that their initial expense contributes to significant long-term savings through increased efficiency. Following the unveiling of new GPUs and products at the GTC conference, Huang emphasized that these advanced technologies allow users to not only save valuable time but also to generate monetizable tokens.

Huang’s comments come in the wake of NVIDIA experiencing a staggering nearly $600 billion market value loss during the January DeepSeek selloff. This stock plunge occurred as concerns regarding demand for NVIDIA’s AI GPUs grew, particularly after China’s DeepSeek highlighted its capacity to train cutting-edge AI models at a fraction of the cost compared to Western companies. As investors reconsidered the pricing of NVIDIA’s offerings, their worries about diminishing demand intensified.

Jensen Huang at GTC — A moment from Huang’s keynote presentation at GTC.

AI Integration Across Industries

During the interview, Huang articulated the transformative evolution of AI over the past year. He noted, “In one year, we made AI better. It’s smarter now; it can reason.”This advancement, he believes, is visible in “just about every industry and company.”He underscored that businesses are increasingly integrating AI into their systems and that there are growing investments in AI infrastructure.

Despite the high price point of NVIDIA’s GPUs, Huang asserted their value, highlighting that they could lead to substantial savings in processing time.“These processors and computers are quite expensive, ”he admitted, but argued that the cost is justified by the significant efficiencies they provide.“The amount you can save… the processing time it reduces is incredible, ”he stated.

The Future of AI and Robotics

Huang envisions AI as the “foundation”of a wide array of industries moving forward, positing that “everything we do in life is underpinned by intelligence.”NVIDIA, he explained, is at the forefront of developing “the infrastructure for manufacturing digital intelligence, ”including innovations that allow multiple GPUs to work in tandem to create what he described as the “factory of the future.”

He also announced partnerships with industry leaders such as TSMC and Foxconn to enhance domestic manufacturing capabilities. When asked about the potential impact of U. S.chip restrictions on NVIDIA, Huang downplayed concerns, asserting that “AI has gone mainstream”and is integral to sectors such as healthcare, education, and agriculture. He suggested that any near-term tariff implications would be “not meaningful”for the company.

Moreover, Huang highlighted the tremendous opportunities AI advances present in the robotics sector. He noted, “The technology has finally arrived where we could create the AIs, we build them in the data centers. Once the training is complete, you can digitally transfer the AI brain into a physical robot.”He believes that the robotics industry offers one of the largest opportunities for AI infrastructure moving forward.

As the conversation around artificial intelligence continues to evolve, Huang’s insights reinforce the significant role NVIDIA will play in shaping its future landscape, despite any current market challenges.

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