NVIDIA CEO Jensen Huang countered the market's misconception that low-cost AI models like China's Kimi K3 will reduce AI investment, asserting that smarter, cheaper models attract more users, thereby increasing overall computing demand. Huang highlighted Kimi K3, a large language model launched by a Chinese AI startup in July 2026, as an excellent example that will encourage greater enterprise and developer adoption. He noted that the market had similarly misunderstood DeepSeek's impact on demand.
Cheaper, more capable AI models expand the user base, directly increasing the total demand for AI computing resources and infrastructure.