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Nvidia Says DeepSeek Advances Prove Need for More of Its Chips
Published by Global Banking & Finance Review®
Posted on January 27, 2025
1 min readLast updated: January 27, 2026
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Nvidia underscores the rising demand for its chips due to DeepSeek's AI progress, stressing the need for more GPUs in the Chinese market.
Nvidia Highlights DeepSeek's Progress, Signals Demand for More Chips
SAN FRANCISCO (Reuters) - Nvidia on Monday said Chinese AI firm DeepSeek's advances show the usefulness of its chips for the Chinese market and more of its chips will be needed in the future to meet demand for DeepSeek's services.
"DeepSeek’s work illustrates how new models can be created using that technique, leveraging widely-available models and compute that is fully export control compliant," Nvidia said in a statement.
Nvidia shares had dropped 17% on Monday on investor concerns the Chinese firm had matched rivals such as OpenAI using far fewer Nvidia chips than U.S. firms. But DeepSeek was also struggling on Monday to accommodate an influx of new users.
"Inference requires significant numbers of Nvidia GPUs and high-performance networking," Nvidia said in a statement.
(Reporting by Stephen Nellis in San Francisco; Editing by Chris Reese)
Key Takeaways
- •Nvidia highlights DeepSeek's AI advancements.
- •Increased demand for Nvidia chips in China.
- •DeepSeek uses fewer Nvidia chips than U.S. firms.
- •Nvidia shares dropped 17% amid investor concerns.
- •DeepSeek struggles with new user influx.
Frequently Asked Questions about Nvidia says DeepSeek advances prove need for more of its chips
1What did Nvidia say about DeepSeek's advancements?
Nvidia stated that DeepSeek's work demonstrates the usefulness of its chips for the Chinese market and indicates that more chips will be needed in the future.
2How did Nvidia's shares react to the news about DeepSeek?
Nvidia shares dropped 17% on Monday due to investor concerns that DeepSeek was able to match rivals like OpenAI using fewer Nvidia chips.
3What are the technical requirements for AI inference according to Nvidia?
Nvidia mentioned that inference requires a significant number of Nvidia GPUs and high-performance networking to be effective.