NVIDIA speaks to support Deepseek models of artificial intelligence amid the collapse of the market
NVIDIA has faced a 16.9 % decrease in its share price today, which is the worst day in Wall Street since March 2020. The reason for the sale was due to the Chinese company Deepseek, which broke confidence in the competitiveness of American technology companies.
NVIDIA shares have decreased to levels that have not been seen since October, as the broader technology market withdrew with it. The accident also hit other major players. Micron and ARM holdings fell more than 11 % and 10 %, respectively, while advanced micro -devices (AMD) and Broadcom got 6 % and 17 %.
AI’s energy infrastructure companies, such as Constellation Energy and Visstra, have faced amazing losses of 20 % and 28 %, respectively. European chip giants ASML and ASM International witnessed sharp declines during trading hours, while in Asia, Japanese chip makers such as Advantest and Tokyo Electron told huge losses.
In late December, Deepseek launched a free linguistic model open source and claimed that he built the model in just two months with a budget of 6 million dollars, a number of dwarms of billions of dollars in investments usually for similar projects in the West.
Also, the company proposed a model for thinking last week that third -party tests say the latest Openai’s offers.
Nafidia praises Depsik
Nafidia took the situation early in the day. CNBC a report The company said: “Deepseek is excellent progress of artificial intelligence and an ideal example of scaling at the time of testing. Their work shows how new models can be created using extensively available models and an account compatible with export. Inference still requires a large number of NVIDIA graphics units and high -performance networks .
They added that Deepseek models prove the new scaling laws for AI-training, and after training, and now time test.
Meanwhile, Mark Anderson, co -founder of Andressen Horowitz, and an explicit supporter of President Donald Trump, launched Deepseek “one of the most amazing and impressive developments that I have ever seen” in a publication on social media.
However, while investors were terrified by the sales on Monday, the Wall Street analysts raises wider concerns about the American leadership in artificial intelligence. Citi analysts said the success of Deepseek explains how the cost of computing has become a great obstacle in this industry.
They added that American companies still dominate the advanced artificial intelligence market, but the emergence of costly effective alternatives such as Deepseek models can challenge this hegemony.
The Stargate AI project, which costs $ 500 billion, was announced last week, and CITI analysts believe that the project shows how the need for first -class graphics processing units, such as that manufactured by NVIDIA, will continue, regardless of any competition.
Meanwhile, Bernstein wondered about Dibsic’s allegations that she had developed its models with less than $ 6 million. They suggested that the number may not include previous research and experiences. In a research note, analysts called Deepseek tools “great” but they warned of describing them as miracles. They described concerns about the collapse of the Amnesty International Infrastructure Market as “exaggerated”.
JPMorgan Chase has been added to the discussion. They wrote: “Investors are concerned that instead of hindering China’s progress in Amnesty International, American restrictions have pushed Chinese companies to innovate faster and more efficient.”
The immediate impact of Dibsic’s declaration is clear: a huge reassessment of the largest players in the artificial intelligence sector. NVIDIA, which is trading at a speed of 32 times its next 12 -month profits, has witnessed that its evaluation is subject to scrutiny with its decrease.
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