Moonshot AI’s frontier model, Kimi K3, has sent goosebumps around the industry, with one of its highlights being able to build a chip within just 48 hours that can deliver more than 8,700 tokens per second. There’s also concern surrounding the AI model undercutting the likes of ChatGPT and Claude, as Microsoft has been reported to pocket $600 million in savings as it looks to swap. Fortunately, NVIDIA’s Jensen Huang is here to ease all concerns, stating that the industry has the incorrect impression of Kimi K3.
Jensen says people had the same idea with DeepSeek as they do with Kimi K3; a more efficient AI model won’t reduce compute demand
Speaking to the media shortly after attending the opening ceremony of Wistron’s new plant established in Dallas, Jensen addressed Kimi K3’s fears and the overall misdirecting of AI. Seeing as how Moonshot AI successfully climbed the benchmark charts with Kimi K3 while utilizing lower compute costs, the usual impression that’s doing the rounds is that companies like Google, Meta, ChatGPT, Anthropic, and others had sharply increased their investments in AI to boost competitiveness, which might have been unnecessary.
Jensen says that “Everyone’s got it backwards, just like they did with DeepSeek. Kimi K3 is useful and very smart. More people will use it, and because of that, more AI computing power will be needed. That’s the logical conclusion.”
Not siding with any side, Jensen mentions that the industry needs more closed models from OpenAI and Anthropic and open models from Moonshot AI, and it’s not difficult to ascertain why NVIDIA’s head honcho would say this, because his company stands to benefit from this boiling AI rivalry. However, he states that a model running efficiently isn’t a sign of overspending from competitors, as AI adoption scales differently.
NVIDIA’s H200 AI GPUs, which were previously banned in China, are now reportedly heading to AI firms, opening yet another revenue stream for the graphics chip manufacturer. In short, regardless of how many efficient or inefficient models there are, the investments will continue to roll in, and when it’s all over, only NVIDIA will be standing tall and walking happily to the bank.
News Source: DigiTimes
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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