Jensen Huang, CEO, NVIDIA, recently remarked that there are many smart young companies, as well as established companies across China, that their company has been working with. He said: “I wouldn’t be surprised if Xiaomi has an amazing robot in the future, or BYD has an amazing robot in the future. So, there is a lot of development here.” He was speaking to China Daily at an event.
DeepSeek revolution
Regarding DeepSeek, he told Xinhua: “DeepSeek is a new type of model. It’s called the reasoning model. So, it thinks many times. The reason why DeepSeek had to be so fast, is because, it has to think many, many times. So, if it is thinking, it has to be very quick. That’s a revolution! In fact, it is the world’s first open, reasoning model. It’s like a thinking AI! It is not just memorizing information and giving you an answer.”
As for platforms, he stated: “We want the developers to prefer the American technology stacks. It should be just like the iPhone, which became successful because of lots of developers. Windows is successful because it has lots of developers. The platform that succeeds is the platform with the most developers. China is home to nearly 50% of the AI researchers in the world. We want the world to build on the American technology stack. We want every developer in the world to prefer the American technology stacks.”
Can US win in AI race?
How can US win in the AI race? Huang noted: “First, to do well in a race, you have to first understand the race itself. You need to look at the resources that you are working with, the assets that you have, and the assets that you don’t have. You should know your advantages and disadvantages. We have to make sure that we understand the game. There is no 60-minute clock on this thing, and it is an infinite game.
“At the first layer, or, the technology layer, the most important thing to understand is the intellectual capital. Remember, 50% of the world’s AI researchers are Chinese. Take a step back and recognize that. That important factor has to be thought about as how do we intend to play the AI game.
“The next is AI factories. In order to do well there, we need to have energy. We transform electricity into digital tokens. The infrastructure layer above that is about the application of that technology. Its about not being afraid of it, engage with it, reskill our workforce, so that we are able to apply it. We should then be encouraging people to adapt it. Each one of the AI, and layers, has its own challenges and opportunities. The game’s going to be a little different in each one of them.”
Lastly, he added that NVIDIA’s market share in China was about 95% four years ago. Its about 50% today, because of the limitations of the products that we sell. The market today is $50 billion a year, and it has been growing, just like AI, which has also been growing everywhere. Over the course of the next four years, and the President’s administration, we are probably talking about a few hundred billions of dollars in revenue.