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.

Nvidia CEO Jensen Huang discussed artificial intelligence and more in an interview with Liz Claman on "The Claman Countdown."

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.

There's a steep cost to reasoning AI, or AI that can provide a step-by-step breakdown of its thought process along with a response. Nvidia CEO Jensen Huang told CNBC on Wednesday that next-generation AI models capable of reasoning through problems before arriving at an answer,