Nvidia\u00a0CEO Jensen Huang said next-generation AI will need 100 times more compute than older models as a result of new reasoning approaches that think \u201cabout how best to answer\u201d questions step by step.<\/p>\n
\u201cThe amount of computation necessary to do that reasoning process is 100 times more than what we used to do,\u201d Huang told CNBC\u2019s Jon Fortt in an interview on Wednesday following the chipmaker\u2019s\u00a0fiscal fourth-quarter earnings report.<\/p>\n
He cited models including DeepSeek\u2019s R1, OpenAI\u2019s GPT-4 and xAI\u2019s Grok 3 as models that use a reasoning process.<\/p>\n
Nvidia reported results that topped analysts\u2019 estimates across the board, with revenue jumping 78% from a year earlier to $39.33 billion. Data center revenue, which includes Nvidia\u2019s market-leading graphics processing units, or GPUs, for artificial intelligence workloads, soared 93% to $35.6 billion, now accounting for more than 90% of total revenue.<\/p>\n
The company\u2019s stock still hasn\u2019t recovered after\u00a0losing 17% of its value\u00a0on Jan. 27, its worst drop since 2020. That plunge came due to concerns sparked by Chinese AI lab DeepSeek that companies could potentially get greater performance in AI on far lower infrastructure costs.<\/p>\n
Huang pushed back on that idea in the interview on Wednesday, saying DeepSeek popularized reasoning models that will need more chips.<\/p>\n
\u201cDeepSeek was fantastic,\u201d Huang said. \u201cIt was fantastic because it open sourced a reasoning model that\u2019s absolutely world class.\u201d<\/p>\n
Nvidia has been restricted from doing business in China due to export controls that were increased at the end of the Biden administration.<\/p>\n
Huang said that the company\u2019s percentage of revenue in China has fallen by about half due to the export restrictions, adding that there are other competitive pressures in the country, including from Huawei.<\/p>\n
Developers will likely search for ways around export controls through software, whether it be for a supercomputer, a personal computer, a phone or a game console, Huang said.<\/p>\n
\u201cUltimately, software finds a way,\u201d he said. \u201cYou ultimately make that software work on whatever system that you\u2019re targeting, and you create great software.\u201d<\/p>\n
Huang said that Nvidia\u2019s GB200, which is sold in the United States, can generate AI content 60 times faster than the versions of the company\u2019s chips that it sells to China under export controls.<\/p>\n
Nvidia counts on billions of dollars of infrastructure spend annually from the largest tech companies in the world for an outsized amount of its revenue. The company has been the biggest beneficiary of the AI boom, with revenue more than doubling in five straight quarters through mid-2024 before growth decelerated slightly.<\/p>\n\n
Nvidia\u00a0CEO Jensen Huang said next-generation AI will need 100 times more compute than older models as a result of new reasoning approaches that think \u201cabout how best to answer\u201d questions step by step. \u201cThe amount of computation necessary to do that reasoning process is 100 times more than what we used to do,\u201d Huang told <\/p>\n","protected":false},"author":0,"featured_media":36867,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":{"0":"post-36866","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/36866","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=36866"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/36866\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/36867"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=36866"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=36866"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=36866"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}