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Nvidia unveils new AI products that it says can help DeepSeek’s models run faster

Nvidia unveils new AI products that it says can help DeepSeek’s models run faster

  • 19.03.2025 00:00
  • scmp.com
  • Keywords: AI, GTC Conference

Nvidia unveiled new AI products, including Dynamo software, which boosts DeepSeek’s model performance by up to 30 times. Despite US export restrictions limiting sales in China, Nvidia highlights its pivotal role in advancing AI capabilities.

Nvidia ProductsNVDAsentiment_satisfied

Estimated market influence

Nvidia

Nvidia

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Analyst rating: Strong buy

Nvidia's new AI products can help DeepSeek’s models run faster, according to Jensen Huang.

DeepSeek

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Analyst rating: N/A

DeepSeek's R1 model benefits from Nvidia's new offerings.

Context

Analysis and Summary: Nvidia's New AI Products

  • Nvidia Launches Dynamo: Nvidia introduced Dynamo, an open-source inference software, at its GTC 2025 conference. It claims Dynamo can boost performance by up to 30 times on existing GPUs for AI reasoning tasks.
  • DeepSeek R1 Model Support: Nvidia’s CEO Jensen Huang highlighted that the new offerings could significantly enhance the performance of DeepSeek’s R1 model, emphasizing Nvidia's pivotal role in the AI era.
  • Market Positioning: The announcement underscores Nvidia's strategic focus on advancing AI capabilities despite US export restrictions limiting its chip sales to China.
  • Stock Performance: Nvidia shares dropped 3.4% to $115.4 on the day of the announcement, following a previous sharp decline of 17% in a single trading session.

Competitive Dynamics and Strategic Considerations

  • Performance Claims: The 30x performance improvement claim positions Dynamo as a game-changer for AI inference tasks, potentially strengthening Nvidia's dominance in the AI hardware-software ecosystem.
  • Strategic Focus on Software: By introducing Dynamo, Nvidia is shifting focus to complementary software solutions to mitigate hardware export restrictions and maintain competitive edge.

Market Implications

  • AI Ecosystem Impact: The launch of Dynamo could accelerate adoption of large language models (LLMs) like DeepSeek’s R1, driving demand for high-performance AI computing solutions.
  • Investor Sentiment: The stock decline reflects investor concerns over near-term challenges, though the long-term impact of Nvidia's innovations in AI software and hardware may offset these concerns.

Long-Term Effects

  • AI Scaling Advancements: By addressing "scaling law" through improved performance on existing architectures, Nvidia could enable more efficient development of next-generation AI models.
  • Regulatory Landscape: Ongoing US export restrictions remain a critical factor in Nvidia's global market strategy, particularly in the Chinese market.