DeepSeek launched a free, open-source large language model in late December, claiming it was developed in just two months at a cost of under $6 million.
It’s because it’s a bubble. There’s no tenable product that’s worth anywhere near the amount of money that people are/were pumping into the stocks.
Now there’s competition. So investors have to choose, who do they think is going to be more successful in the future? And that’s a decision based on the predicted value of the actual product.
And if we’re only talking about NVidia, they didn’t have any competition until now. So of course their stock was going to tank.
DeepSeek isn’t a competitor to Nvidia. They’re not making better hardware. They’re just making better software, and more accessible. Better access to software is only good for hardware companies.
And this doesn’t change the future outlook of AI. More efficient AI software just improves that outlook. Now there’s suddenly a great new potential for improved AI models.
This is bad news for OpenAI, who relies on their exclusive access to the GPT models. Good news for Nvidia, because now they’re going to sell hardware to anyone who want to take OpenAI’s throne.
It’s because it’s a bubble. There’s no tenable product that’s worth anywhere near the amount of money that people are/were pumping into the stocks.
Now there’s competition. So investors have to choose, who do they think is going to be more successful in the future? And that’s a decision based on the predicted value of the actual product.
And if we’re only talking about NVidia, they didn’t have any competition until now. So of course their stock was going to tank.
DeepSeek isn’t a competitor to Nvidia. They’re not making better hardware. They’re just making better software, and more accessible. Better access to software is only good for hardware companies.
And this doesn’t change the future outlook of AI. More efficient AI software just improves that outlook. Now there’s suddenly a great new potential for improved AI models.
This is bad news for OpenAI, who relies on their exclusive access to the GPT models. Good news for Nvidia, because now they’re going to sell hardware to anyone who want to take OpenAI’s throne.