What led to Nvidia’s stock drop after DeepSeek's launch?

Nvidia’s stock drop following the launch of DeepSeek’s AI model, DeepSeek R1, was largely due to the unexpected performance of the model, which rivaled those of global tech giants like OpenAI and Nvidia despite DeepSeek's significantly lower budget. DeepSeek's breakthrough was achieved using more cost-effective hardware like the H800 chips, as opposed to the high-end, expensive GPUs typically used by other AI models. This innovation demonstrated that high-quality AI performance could be achieved without the massive investment usually associated with cutting-edge technology. As a result, Nvidia’s dominance in the AI hardware sector was challenged, leading to a brief decline in its stock value. DeepSeek’s success underlined the potential for more affordable AI solutions to disrupt the market, causing investors to reassess Nvidia’s position in an increasingly competitive industry. For more details, visit http://48x48skid.blogspot.com/2025/01/how-deepseek-ai-disrupted-global.html

How DeepSeek AI Disrupted Global Markets and Addressed Sensitive Topics