This may lead to greater sales of Nvidia's latest GPUs as they can maximize inferencing performance. The company's new Blackwell architecture will give test-time scaling -- a technique that allows a model to think over a problem -- on models like DeepSeek R1 "a giant boost," Nvidia says.

DeepSeek developed a highly cost-efficient model threatening U.S. AI supremacy, causing NVDA’s stock to plunge and sparking fears of an AI price war.

DeepSeek stunned the tech world with the release of its R1 "reasoning" model, matching or exceeding OpenAI's reasoning model for a fraction of the cost.