Source: moneycontrolNvidia has praised DeepSeek’s innovative AI architecture, calling it an “excellent advancement” and a prime example of Test Time Scaling. The US-based chipmaker highlighted how DeepSeek’s approach leverages its widely available, export-compliant computing resources to create cutting-edge models, underscoring the global impact of its GPU technology. &#34;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,” said Nvidia in a statement.↳Nvidia's comments come a day after its stock price plummeted by 17% on January 27. DeepSeek has made quite a stir in the AI landscape by recently unveiling its open-source reasoning model, R1, which has reportedly outperformed leading models from the likes of OpenAI.R1 was reportedly developed at a fraction of the cost—less than $6 million—compared to the billions spent by Silicon Valley firms. This achievement has drawn attention to DeepSeek’s efficient use of Nvidia’s GPUs, specifically tailored for the Chinese market, which Nvidia confirmed are fully compliant with export control regulations.Nvidia emphasised that DeepSeek’s work highlights the potential of combining pre-training, post-training, and the newly introduced test-time scaling techniques. These advancements, the company noted, require significant computational power, including high-performance networking and large-scale GPU infrastructure.“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,” said Nvidia.Although R1 has generated significant attention, DeepSeek itself remains a lesser-known entity. Headquartered in Hangzhou, China, the company was established in July 2023 by Liang Wenfeng, a Zhejiang University graduate specialising in information and electronic engineering, according to a report by MIT Technology Review. DeepSeek was incubated by High-Flyer, a hedge fund founded by Liang in 2015. Similar to OpenAI’s Sam Altman, Liang’s goal is to develop artificial general intelligence (AGI)—an advanced AI capable of performing a wide range of tasks at or beyond human-level proficiency.

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Here's what Nvidia has to say on the emergence of China's DeepSeek AI

- Nvidia suggests that DeepSeek's achievements are preliminary, likening them to using training wheels.  
- The article highlights that training costs are lower than inference costs, emphasizing the ongoing labor involved in model application.  
- If DeepSeek's outage is due to demand and supply issues rather than a cyberattack, it would support Nvidia's message to investors about the importance of inference costs.  