ASML CEO Christophe Fouquet believes that the introduction of lower-cost AI models, like DeepSeek's R1, will drive increased demand for AI chips. He cites continued investment in AI research and development by hyperscalers and the importance of addressing cost and energy consumption for widespread AI adoption.
ASML CEO Christophe Fouquet expressed confidence that the emergence of new, low-cost AI models, such as DeepSeek's recently unveiled R1, will actually stimulate rather than hinder demand for AI chips. Speaking to CNBC on Wednesday, Fouquet stated that he sees no indication of a slowdown in demand for AI-focused chips. He explained that a reduction in the cost of AI could lead to a wider adoption of AI applications, ultimately resulting in increased demand for AI chips over time.
Fouquet emphasized that hyperscalers, the large cloud computing companies heavily invested in AI infrastructure, continue to make substantial investments in research and development (R&D). He acknowledged the ongoing discussions surrounding DeepSeek's impact on the industry but stated that ASML hasn't received any inquiries from customers expressing concerns about the potential effects of DeepSeek's model on chip demand. Fouquet further stated that for AI to truly flourish in the coming years, not just within hyperscaler environments but also in everyday devices like phones and PCs, it's crucial for AI to address both cost and energy consumption. He believes that any advancements that lower the cost of AI will be beneficial because they will enable AI applications to reach a broader range of devices. The emergence of DeepSeek's R1 has sparked questions about the substantial spending by leading AI players like OpenAI and Microsoft on Nvidia graphics processing units (GPUs), which are essential for training and running advanced AI models. There are concerns that this could potentially impact the demand for ASML's high-precision extreme ultraviolet (EUV) machines, used to manufacture the most cutting-edge microchips. EUV tools accounted for 3 billion euros out of the 7.1 billion euros in net bookings ASML reported during the fourth quarter
AI Chips Deepseek ASML Hyperscalers Demand Cost Reduction
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