Despite concerns about a bubble sparked by the arrival of Chinese AI company DeepSeek last month, Nvidia, the semiconductor behemoth at the centre of the AI boom, stated that business was still going well. Over the three months ending January 27, sales of the company’s chips reached over $39 billion (£30.7 billion), a 74% increase from the previous year.
Demand for Nvidia has increased as major tech businesses look to the company for chips that can manage the massive volumes of data needed to train AI models. However, DeepSeek claimed to have used less sophisticated and costly chips to teach its chatbot.
Earlier this month, its announcement caused a steep decline in Nvidia’s stock, which impacted the entire market. After major corporations like Facebook’s owner Meta stated that they anticipated sticking with their current AI investment policies, investors became more relaxed.
Jensen Huang, the CEO of Nvidia, stated that he was not concerned about a rapid change in demand because machine learning would be used to generate software in the future, which would require chips with a different design than the “hand-coding” of the past. “We know that software has changed fundamentally,” he added, adding that the application of AI was still in its “early days.
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