Nvidia CEO Jensen Huang emphasized that next-generation artificial intelligence systems require 100 times more computing power than previous models due to advanced reasoning capabilities. Speaking after Nvidia’s quarterly earnings report, Huang elaborated on how AI processes now evaluate questions in a more structured, logical way, resulting in significantly higher computational demands.
Nvidia’s Impressive Financial Growth
Nvidia reported a 78% year-over-year increase in total revenue, reaching $39.33 billion. Its data center segment—where its industry-leading AI-focused GPUs dominate—accounted for over 90% of sales, surging 93% to $35.6 billion. Despite these positive results, Nvidia’s stock remains below its January levels after losing 17% in value due to concerns over Chinese AI advancements.
DeepSeek and the Future of AI Compute
Huang dismissed fears that AI models like DeepSeek’s R1 might reduce infrastructure costs, arguing that such reasoning-based models actually drive even greater demand for chips. He praised DeepSeek’s contributions, stating that open-sourced AI models help accelerate innovation and adoption.
Impact of U.S. Export Controls on Nvidia’s China Business
Tighter U.S. export restrictions have cut Nvidia’s China revenues by about 50%. While regulatory constraints limit access to advanced chips, software-driven workarounds could help AI developers optimize existing hardware. Huang maintains that Nvidia’s U.S.-sold GB200 outperforms China-restricted versions by 60 times in AI content generation.
AI Boom Continues Despite Market Fluctuations
Nvidia has benefited extensively from the AI boom, securing billions in annual infrastructure spending from top tech firms. Revenue more than doubled for five consecutive quarters, although growth has recently stabilized. With AI compute needs surging, Nvidia remains at the forefront of the increasing demand for advanced AI hardware.
