Nvidia's Jensen Huang Challenges AI Assumptions after DeepSeek Success

Nvidia CEO Jensen Huang has responded to recent skepticism about the company's dominance in the AI chip market, addressing claims that competitors such as China's DeepSeek have achieved comparable AI capabilities with far less hardware. At a large computer programming event, Huang stated that everyone has been wrong about how much computer power is required for AI.

"Almost the entire world got it wrong," Huang said on stage at the Nvidia GPU Technology Conference (GTC), which he dubbed "the Super Bowl of AI" according to Reports.

"The amount of computation we need as a result of agentic AI, as a result of reasoning, is easily 100 times more than we thought we needed this time last year," he stated referring to AI agents that require little human intervention for routine tasks.

Huang emphasized that Nvidia is well-positioned to meet these evolving needs. He emphasized the importance of speed and scale in AI inference, saying, "If you take too long to answer a question, the customer will not return. "This is similar to a web search."

Nvidia launches its next-generation GPU chip, Blackwell Ultra

Nvidia also announced a new chip generation, which includes the Blackwell Ultra GPU. The Blackwell Ultra is set to be released in the second half of this year and will have more memory than the current Blackwell chip, allowing it to support larger AI models.

The Vera Rubin chip system, the successor to Blackwell, is scheduled for release in the second half of 2026 and will provide even faster processing speeds. Nvidia also intends to continue its chip development trajectory, with the Feynman chips set to arrive in 2028.

These new chips are intended to optimize AI systems for both fast and large-scale responses. Huang argued that Nvidia's chips are uniquely capable of providing both, which is critical for user satisfaction and retention.