NVIDIA statement on DeepSeek: says Chinese AI company is an 'excellent AI advancement'

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NVIDIA executives would be waking up to quite the headache this morning, with Chinese AI company DeepSeek taking the headlines with its new AI model seemingly destroying OpenAI in one swift release.

In a statement to Futurum Group analyst Daniel Newmann, NVIDIA explained that DeepSeek's new AI model is an excellent AI advancement and a perfect example of Test Time Scaling.

In full, NVIDIA said in a statement: "DeepSeek is an excellent AI advancement and a perfect example of Test Time Scaling. 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. Inference requires significant numbers of NVIDIA GPUs and high-performance networking. We now have three scaling laws: pre-training and post-training, which continue, and new test-time scaling".

DeepSeek talked about its new Janus-Pro 7B model on Hugging Face: "Janus-Pro surpasses previous unified model and matches or exceeds the performance of task-specific models. The simplicity, high flexibility, and effectiveness of Janus-Pro make it a strong candidate for next-generation unified multimodal models".

• Read more: NVIDIA shares bleed $384B in a few hours after DeepSeek shocks AI world
• Read more: DeepSeek's new AI app: top free app on the Apple App Store, ahead of ChatGPT
• Read more: Chinese AI firm DeepSeek has 50,000 NVIDIA H100 AI GPUs says CEO, even with US restrictions

Coming seemingly out of nowhere, the Chinese AI company has risen to the top of the Apple App Store charts, beating out OpenAI's dominant ChatGPT as the most popular free app on the App Store. DeepSeek's AI model is far, far cheaper to train than competing AI models, costing just $5.6 million to train on far less powerful (and far cheaper expensive) hardware.

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AI competitors require hundreds of millions of dollars to train their AI models, as well as hundreds of billions of dollars of AI hardware... mostly from NVIDIA, which has seen Team Green bleeding out over $500 billion from its market cap in the last 24 hours alone.