The Nvidia actionsone of the largest world manufacturers of graphic processors, they collapsed by 17% – the largest drop since March 2020 – canceling 589 billion dollars from the company’s capitalization of the marketreflecting a loss of trust from investors, at least according to what is reported in an article of Bloomberg. The loss of market value is due to the recent success of Deepseka Chinese startup operating in the field of artificial intelligence, whose technology offers performance comparable to those of the models to the Silicon Valley companies, despite having invested much less resources by learning to optimize hardware as much as possible. This collapse, one of the most intense since 2020, has raised doubts among investors regarding the dominant position of Nvidia in the AI sector. The fear is that the high cost of Nvidia’s hardware can become less “justifiable” if cheaper alternatives emerge.
This decline also had repercussions on some indices, such as theS & P 500 (the most important US share index) and the Nasdaq-100 who, respectively, last Monday lost the1.5% and the 3%.
Because the Nvidia shares collapsed by 17%
The reason why the Nvidia actions went heavily down was originated by the Deepseek technology, able to offer comparable performance Ai Ai “Made in the USA” to a fraction of the cost to be supported for the training of the models. This turned on not a few concerns in investors regarding the enormous expenditure incurred by large US companies in the development of their AI models.
The company founded by Liang Wenfeng It has been able to conceive a highly efficient and low cost model. Not only that: this Open Source product, having quickly climbed the rankings of Apple’s App Store in the United States, has raised concerns about the possible upheaval of the entire AI business model. In essence, the market reaction was dictated by the fact that, if Deepseek shows that good results can be obtained without depending on the expensive Nvidia chip, then the value of companies that base their business on the sale of hardware for AI could downsize.
The Jefferies analysts (an independent investment bank), in this regard they observed:
Concerns immediately emerged that (Deepseek, editor’s note) could represent a disruptive element for the current business model of artificial intelligence, which is based on high -end chips and on a large calculation power and therefore on energy.
For completeness of information, however, it must also be said that some analysts believe that the increase in efficiency could lead to a greater demand for nvidia chips in the long term and, therefore, the tech of Santa Clara can sleep relatively calm.
The reaction of the USA to the “Tsunami” Deepseek
To hinder China’s advance in the artificial intelligence sector, The United States imposed restrictions on the export of advanced semiconductors The sale of chips to the most sophisticated in Nvidia is limited. However, the rapid development of Deepseek indicates that Chinese researchers have been able to develop alternative solutionsfocusing on the optimization of available resources.
It is no coincidence that Nvidia herself recognized the excellent results obtained by the Chinese startup, describing their model as a “remarkable step forward for the AI»And specifying that Deepseek operated in compliance with US regulations on advanced chips. Nvidia also stressed that the practical functioning of artificial intelligence models, known as inference, “It requires a significant number of NVIDIA GPUs and high -performance networks»A clear sign of the fact that specialized hardware demand remains high.
It remains to be seen if the efficiency of the Chinese models will actually change the dynamics of the AI sector or if Nvidia, together with the other Big Tech Americans, will be able to maintain a dominant position on the market.
