Why Nvidia is rooting for Chinese AI
#Nvidia #AI #JensenHuang
Why would Nvidia want Chinese AI models to improve?
Nvidia CEO Jensen Huang says the rapid advancement of Chinese AI models isn't something the industry should fear. Instead, he argues that better AI models—regardless of where they're developed—will drive more AI adoption, more data centers and ultimately more demand for Nvidia's hardware.
Yahoo Finance's Dan Howley explains why Nvidia views China's AI progress differently than many investors, how open-weight AI models are changing the competitive landscape, and why software and infrastructure remain at the center of the global AI race.
Timestamps
00:00 Why China's AI models matter
01:08 Why better AI helps Nvidia
02:00 Are Chinese AI models a threat?
03:02 Why Nvidia keeps selling more chips
AI GeneratedMay contain errors
These Chinese models are excellent.
Open source models that are excellent should be used.
And so the market's misunderstood the impact
of DeepSeek the first time.
It's misunderstood the-
Another Chinese model.
Yeah, it's misunderstood the impact
of Kimi again this time.
I think, first of all, with great AI, open models,
it's great for the whole industry.
Obviously, when there's more, if there's great AI,
even if it's open, wherever it comes from,
there will be more use.
Whenever there's more use,
you'll have to sell a lot more NVIDIA computers.
We'll have to build more data centers.
We'll have more services.
The technology will diffuse into more industries.
And so starting point is great models lead to great use,
which leads to great growth.
So interesting that he's talking about that
because a couple of things stand out to me, Dan.
One, it's good for NVIDIA if there's more use of AI.
Two, NVIDIA has stakes in a lot of the companies
that will be competing
with the open source models out there.
So in that way,
it's not necessarily in their financial interest.
And three, he doesn't even touch,
and maybe he does elsewhere in the interview, to be fair.
He doesn't even touch the Chinese security concerns
about these open models.
Yeah, I think one of the things to keep in mind
with these open models is they're open weight
so that you can make certain adjustments
but not fully go in and tool with it on your own.
You can customize it to a degree.
One of the things that's noteworthy
about open source software is that so many people,
because it's open source, usually are messing with it
that they're addressing cybersecurity issues on the spot.
So that's what makes open source software so secure.
It seems stupid because you're like,
well, everybody has access to it.
Why would it be safe?
But it's because everybody has access to it that it is.
They're all trying to ensure
that it's not something that people can break.
When it comes to what Jensen said
on the DeepSeek versus Kimi K3 is,
kind of what they continue to say
is if it becomes easier to run models,
more people will buy our hardware
because they'll want to run more models.
So the thinking is, okay, we have more companies
that can afford to run models or get access to models.
They're going to need to power that somehow
and they'll use our software, our hardware.
The other flip side of that
is that his regular kind of approach
is the more hardware you put behind a model,
the better the responses are.
So in other words, the bigger the engine,
the faster the car goes.
That's what he's regularly applying
to these kind of AI models as well.
So I don't see this as necessarily a negative for NVIDIA,
but I think it kind of leads to the question
of how far into this argument can it go
because of the geopolitical implications.
NVIDIA is trying to get back on sale in China.
China is saying, maybe some companies will take this.
The U.S. has banned certain chips,
then kind of flipped on that.
And so it's interesting to see him
kind of go out and talk about this kind of stuff.
Yeah, it's crucial to his business,
but also could be like kicking a hornet's nest
in Washington.