Nvidia CEO Jensen Huang said next-generation AI will need 100 times more compute than older models as a result of new reasoning approaches that think “about how best to answer” questions step by step.

The biggest headline was the commentary provided by Jensen Huang during the call with analysts with respect to the release of DeepSeek late last month. While many investors hit the panic button, the chief executive explained that developments of this nature would increase demand for Nvidia's processors, not reduce it.

Nvidia’s latest generation Blackwell GPU sales are off to a good start. “Demand for Blackwell is amazing as reasoning AI adds another scaling law — increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter,