DeepSeek’s unveiling of its newest large language model, R1, has sent shockwaves through the AI industry. As a result, NVIDIA’s stock price dipped considerably as R1 used older generations of NVIDIA chips, resulting in questions over the company’s AI supremacy.
However, what commentators fail to realise is that despite this, the US tech giant remains a steady bet for the future owing to its entrenched position in the sector and its willingness to diversify away from conventional tech.
US companies can also expect to have the full, unwavering support from the newly inaugurated Trump administration, which, judging by its first weeks, has already demonstrated its ruthless commitment to protecting American interests.
While DeepSeek’s advancements are noteworthy, recent developments should be viewed in context — Large Language Models (LLMs) are just one part of the AI puzzle, and US tech giants maintain a significant edge in other critical areas.
Prior to DeepSeek’s arrival, NVIDIA announced an ambitious pivot towards robotic software, which will insulate the company from shocks to its better-known LLM offering.
NVIDIA CEO Jensen Huang’s recent announcements at CES Las Vegas 2025, an annual technology conference, set the tone and outlined why the company remains at the forefront of the AI space. Consumer electronic audiences were one of the many areas Huang homed in on at the conference, outlining NVIDIA’s commitment to growth and innovation.
Beyond conventional technology, Huang identified a “trillion dollar” opportunity, expanding NVIDIA’s portfolio to include software for training and deploying robots. This diversified offering seeks to ease concerns around the company’s AI dominance, which stems from its reputation solely as a chip designer.
Huang also announced the introduction of “physical AI tools,” which aim to help robots learn using simulated environments that closely mimic the real world. These tools enable the efficient training of robots, which drastically cuts costs.
The new focus on simulation also highlights the importance of NVIDIA’s technology in creating realistic environments for training AI, which is a critical step in developing robust and adaptable robots and demonstrates NVIDIA’s enduring dominance in AI infrastructure.
Just like DeepSeek, NVIDIA is seeking to democratize access to AI high-performance models. Huang further revealed that NVIDIA will produce a personal AI supercomputer called Project DIGITS, which is powered by their new superchip. Designed for data scientists and researchers, DIGITS will create possibilities for innovative AI research, positioning NVIDIA as a catalyst for AI development at all levels.
By expanding the AI ecosystem, the company is reducing its reliance on data centers. Providing a local processing solution lowers the barrier to entry for AI development, making it more accessible and cost-effective.
AI expert and entrepreneur Rotem Farkash said, “NVIDIA’s advancements in AI and robotics are undeniably impressive. The mainstream arrival of DeepSeek is welcome because competition inevitably drives innovation.”
Farkash continued to say, “DeepSeek’s impressive developments don’t reduce the role of tech giants such as NVIDIA — their investments in AI infrastructure are sure to pay dividends in other ways.”
This sentiment has been echoed by Morningstar strategist Brian Colello, who told Barron’s that “demand still exceeds supply” for AI chips, meaning “tech firms will continue to buy all GPUs they can as part of this AI gold rush.”
Instead of fearing the rise of DeepSeek, it should be hailed for developing R1 at such a low cost, which will bring down the cost of AI for developers and users alike.
While people are right to initially question NVIDIA’s position in the AI space after the announcement of R1, NVIDIA’s continued innovation at CES shows how they are continuing to make their mark on the industry.
The entrance of a new competitor is welcome news for research and development as it spurs innovation. Through NVIDIA’s diversified portfolio, the US tech company remains a significant player in the sector despite DeepSeek’s recent shake-up.
Spencer Hulse is the Editorial Director at Grit Daily. He is responsible for overseeing other editors and writers, day-to-day operations, and covering breaking news.
