Turkey

Chinese Deepseek AI crushes Nvidia terribly

Nvidia’s stock experienced a significant decline over the past two days, primarily due to the emergence of DeepSeek, a Chinese artificial intelligence (AI) startup. DeepSeek has developed an AI model comparable to leading Western models but at a fraction of the cost, raising concerns about Nvidia’s market position and the broader AI industry.

DeepSeek’s AI model was trained using Nvidia’s H800 GPUs, incurring a cost of only $5.6 million—substantially lower than the expenditures of Western competitors. While this demonstrates the efficiency of Nvidia’s technology, it also prompts questions about the sustainability of large-scale investments in AI infrastructure.


The rapid advancement of DeepSeek has led to a reevaluation of investments in AI infrastructure, contributing to a broader decline in technology stocks. The Nasdaq 100 index fell by approximately 3.6%, with major tech companies like Microsoft, Amazon, and Alphabet also experiencing losses.

Additionally, geopolitical tensions between the U.S. and China have intensified concerns. The U.S. Commerce Department is scrutinizing how Nvidia’s chips continue to reach China despite export controls, while China is responding with measures such as rare mineral bans and antitrust investigations into Nvidia’s acquisitions.

These developments have collectively led to a significant decrease in Nvidia’s stock value, with the company losing over $400 billion in market capitalization in a short period. This event marks one of the largest single-day losses in stock market history.

 

Print Friendly, PDF & Email

Follow us on Twitter

Languages

Follow us on Twitter

Languages