Nvidia CEO Jensen Huang discussed the impact of Chinese AI startup DeepSeek’s R1 model at Nvidia’s GTC conference, according to CNBC. Huang called DeepSeek’s model “fantastic” and the “first open-sourced reasoning model." The CEO emphasized DeepSeek's ability to break down problems step-by-step and verify answers. He noted that reasoning AI requires 100 times more computation than traditional AI. DeepSeek’s model triggered a sell-off in AI stocks in January, causing Nvidia to drop 17% daily and lose nearly $600 billion.