Nvidia Unveils AI Chips, Brushing Off DeepSea Challenge

The CEO of Nvidia, Jensen Huang, is anticipated to display advanced AI and quantum computing chips on Tuesday, dismissing speculation about China’s DeepSeek causing disruptions in the market.

Huang’s keynote address at Nvidia’s yearly developers conference is expected 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 upgrades currently in development.

The surge in artificial intelligence sparked tremendous growth in Nvidia’s stock price, but a significant downturn occurred earlier this year due to the unexpected success of DeepSeek.

The shares, among the highest-volume stocks on Wall Street, have dropped over nine percent for the year so far, even with a recovery from their lows in March.

Based in China, DeepSeek has disrupted the realm of generative artificial intelligence (GenAI) by unveiling an affordable yet highly efficient 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 its 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 AI purposes. Some argue that an affordable alternative might diminish the market dominance of this prominent Silicon Valley chip manufacturer.

The co-founder and CEO of Yurts, Ben Van Roo, whose firm focuses on safeguarding confidential information while enabling access through AI models, thinks that the widespread use of DeepSeek is likely good news for Nvidia.

Van Roo told AFP that DeepSeek significantly sped up the urge to engage with these models.

You have further sparked global interest in generative AI, regardless of the fact that it’s Chinese, I believe it turned out to be a positive day for Nvidia.

Blackwell Booming

Nvidia has increased production of its premium Blackwell processors designed for AI tasks, recording billions in sales during their initial quarter available.

“Artificial intelligence is progressing at an incredible pace,” and it is paving the way for “the subsequent generation of AI to transform major sectors,” Huang informed financial analysts lately.

Huang thinks that Nvidia’s processors and software frameworks will keep driving or instructing AI for robotics, vehicles, and digital “agents,” which refers to artificial intelligence capable of making choices without human intervention.

The CEO might also emphasize a move towards quantum computing.

Following numerous failed forecasts, quantum computing is now advancing swiftly, with practical applications and scientific advancements anticipated within just a few years rather than multiple decades.

American tech corporations, emerging businesses, financial institutions, and drug companies are heavily investing in this groundbreaking technology.

GPUs manufactured by companies such as Nvidia are excellent for managing numerous computational tasks at once, which makes them particularly suitable for quantum computing applications.

The United States and China are fiercely competing in the field of quantum technology, with Washington implementing export limitations on this advanced 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.