Nvidia Unveils AI Chips, Brushing Off DeepSea Controversy
The CEO of Nvidia, Jensen Huang, is anticipated to unveil advanced AI and quantum computing processors on Tuesday. This move aims to counteract speculation about China’s DeepSeek potentially disrupting the market.
Huang's keynote address at Nvidia’s yearly developer conference ought to fill up the SAP Center in San Jose, a city in Silicon Valley, which is also home to the NHL hockey team, the Sharks.
Industry observers anticipate Huang to highlight Nvidia's upcoming Blackwell series of graphics processing units (GPUs), along with some anticipated enhancements currently in development.
The surge in artificial intelligence sparked unprecedented growth in Nvidia’s stock prices until a significant downturn earlier this year was caused by the unexpected success of DeepSeek.
The shares, among the highest volume traders on Wall Street, have dropped over nine percent for the year so far, even with a recovery seen since hitting a low point in March.
Based in China, DeepSeek disrupted the realm of generative artificial intelligence (GenAI) by unveiling an affordable yet highly capable model that poses a challenge to the dominance of OpenAI and other large-budget giants.
However, multiple nations have raised concerns about how DeepSeek manages data, with the company stating that it is stored on "secured servers situated within the People's Republic of China."
High-performance Nvidia graphics cards are highly sought after by major technology companies constructing data centers for their AI operations. Some believe that introducing an affordable alternative might undermine the market dominance of this prominent Silicon Valley semiconductor company.
Ben Van Roo, who co-founded and leads Yurts as CEO, and whose firm focuses on safeguarding confidential information while enabling accessibility for AI models, thinks that the widespread adoption of DeepSeek is likely beneficial for Nvidia.
Van Roo told AFP that DeepSeek significantly sped up the appetite for using these models.
You have further whet the world's appetite for generative AI regardless of the fact that it’s Chinese, and I believe it was a positive day for Nvidia.
Blackwell Booming
Nvidia has increased production of its high-end Blackwell processors designed for AI tasks, achieving billions in sales during their debut quarter.
"AI is progressing at an astonishing pace," and it is paving the way for "the subsequent wave of AI to transform major sectors," Huang informed financial analysts lately.
Huang thinks that Nvidia’s processors and software ecosystems will keep driving or educating AI systems for robotics, automobiles, and digital “agents,” which refers to artificial intelligence capable of making choices without human intervention.
The CEO might also emphasize the potential move towards quantum computing.
Despite numerous failed forecasts, quantum computing is now advancing quickly, with practical applications and significant scientific discoveries anticipated within just a few years rather than decades.
American technological corporations, emerging businesses, financial institutions, and drug manufacturers are heavily investing in this groundbreaking technology.
CPUs such as those produced by Nvidia are perfect for managing numerous computational tasks at once, rendering them suitable for quantum computing applications.
The United States and China are at the forefront of advancing quantum technologies, while Washington has implemented export limitations on this tech.
Nvidia reported that it finished last year with record high revenue of $130.5 billion, driven by demand for its chips to power artificial intelligence in data centers.
Nvidia anticipates revenues of around $43 billion for the present fiscal quarter, surpassing analysts' predictions.