Cheap Chinese Models Threaten U.S. AI Dominance. So Why Is Nvidia's CEO Defending Them?

I want to start with Jensen Huang, who recently used his very first post on X to defend Chinese open source AI models.

Now, why would NVIDIA's CEO do that?

So NVIDIA is in an interesting position in the broader AI ecosystem.

NVIDIA benefits the most when AI is widespread and widely used.

It sort of doesn't matter exactly which model is winning the race, as long as more people are using AI, more businesses are using AI.

And open source in particular does offer a path to diffuse AI faster through the economy to more users and consumers.

even globally.

So in that sense, the more AI there is, the more NVIDIA wins.

Yeah.

And speaking of the more AI that there is, I want to go back to 2025.

That's when news that DeepSeek hit the U.S. markets.

That really shook the entire AI ecosystem.

Do you think that Wall Street has fully priced in these low cost competition models from China.

We have Anthropic projecting a staggering 30 trillion total addressable market.

So then what happens then if the core business models driving these companies like Anthropic or OpenAI prove to be unsustainable?

I think right now, markets are pricing companies like Anthropic as if there was a winner-take-all endgame here.

The valuations and the pace of increase in the valuations, as well as that $30 trillion figure, if I got that right.

$30 trillion.

I have to remember how many zeros we're talking about here.

But I think that kind of reflects exactly that mentality that not only will there be winner take all within AI, but that whoever wins in AI wins everything.

And I think we're already seeing signs that that might not be completely feasible.

And in particular, we're seeing a lot of interesting demand for cheaper models, open source models and Chinese open source models.

I think you're right to point out that deep seek moment shocked the world, but then stock markets jumped back pretty quickly.

I think we're not fully digesting what that really means for the long term evolution of the AI market.