Nvidia calls DeepSeek’s R1 model 'an excellent AI advancement'

ISTANBUL

US chip giant Nvidia described the R1 model launched by Chinese artificial intelligence (AI) startup DeepSeek as “an excellent AI advancement” Monday, while noting that a significant number of chips will be needed to meet the demand for its services.

The Nvidia's spokesperson’s comments came after DeepSeek released R1 last week, a free AI assistant that it says uses much less data than its rivals at a fraction of the cost, triggering a major tech stock selloff Monday and causing a huge loss in the value of shares of chip companies, including Nvidia.

DeepSeek’s work illustrates how new models can be created using the technique, leveraging widely-available models and compute that is fully export control compliant, the statement said, adding the model is "an excellent AI advancement and a perfect example of Test Time Scaling," Forbes reported.

Inference, the process of providing a trained model inputs to generate outputs such as images, text, or video and make accurate predictions, "requires significant numbers of NVIDIA GPUs and high-performance networking," the statement underlined.

"We now have three scaling laws: pre-training and post-training, which continue, and new test-time scaling."

The latest Chinese DeepSeek AI model uses fewer chips than international competitors.

The model became the most downloaded AI application in app stores, surpassing US-based ChatGPT.

The share price of Nvidia, which was $142.62 at the close on Friday, had fallen around 17% to $118.19 as of 2150GMT.

While Nvidia's shares have seen the highest daily loss since March 2020, the company's market capitalization has also decreased by around $500 billion.

ISTANBUL

"We now have three scaling laws: pre-training and post-training, which continue, and new test-time scaling."

The latest Chinese DeepSeek AI model uses fewer chips than international competitors.

The model became the most downloaded AI application in app stores, surpassing US-based ChatGPT.

The share price of Nvidia, which was $142.62 at the close on Friday, had fallen around 17% to $118.19 as of 2150GMT.

While Nvidia's shares have seen the highest daily loss since March 2020, the company's market capitalization has also decreased by around $500 billion.