Does Kimi K3 Spark Overinvestment in AI? Huang: Smarter AI Means More Users and Greater Demand

Jensen Huang, CEO of NVIDIA (NVDA-US), spoke today (22nd) regarding the market reaction to Kimi K3, the new large language model launched by Chinese AI company Moonshot AI.

In response to concerns that Kimi K3’s low cost and high efficiency might indicate overinvestment in the AI sector, Huang firmly rejected the notion, calling it "a complete reversal of understanding."

"Kimi K3 is a highly useful and intelligent AI model," he stated. "The smarter AI becomes, the more people will use it. And behind that increased usage lies a growing demand for the computers—GPUs and data centers—needed to run these AI models."

Huang also pointed out that many people misunderstand not only Kimi K3 but also other Chinese AI models like DeepSeek. "There’s a widespread misconception. The more users adopt these models, the better it is for the entire AI ecosystem," he emphasized.

Furthermore, he highlighted the importance of diversity in AI models. "We need closed, ready-to-use models like those from Anthropic and OpenAI. But we also need excellent open models like Kimi. Innovation accelerates when both coexist."

His remarks suggest that the evolution of AI technology creates a positive feedback loop extending beyond software competition, impacting hardware, cloud infrastructure, and the broader development ecosystem. For NVIDIA, the proliferation of high-performance AI models directly fuels demand for its GPUs, making this a strategically vital position.