
Artificial Battle Summarized by Facts and Figures
Nvidia lost nearly $600 billion in market capitalization on Monday, marking the largest drop in U.S. history.
Last week, Nvidia overtook Apple, becoming the most valuable publicly traded company. However, on Monday, the company’s stock price dropped by 17%, closing at $118.58.
This was arguably Nvidia’s worst day in the market since March 16, 2020, when the COVID-19 pandemic was still in its early stages.
The drop was due to concerns that the Chinese AI lab DeepSeek is increasing competition in the global AI sector. As mentioned in previous posts, in late December, DeepSeek unveiled a free, open-source language model with massive tokens, which they claim was developed in just two months using downgraded Nvidia H800 chips worth less than $6 million.
Nvidia's graphic processors (GPUs) dominate the AI data center chip market in the U.S., causing American companies to lose $1 trillion in a single day due to DeepSeek's advancements.
Tech giants like Alphabet, Meta, and Amazon spend billions of dollars on these processors to develop and deploy their AI models.
Industry analysts report that DeepSeek’s new release has caused “great concern regarding the computational demand impact, necessitating a recalculation of the maximum expenses for GPUs.”
Without even giving OpenAI time to recover from this crushing setback, Chinese DeepSeek launched a multimodal generative model yesterday that surpasses even DALL·E 3 and Stable Diffusion.
The generated images are almost indistinguishable from reality, and the new model is also free.
You can download it here:https://huggingface.co/deepseek-ai/Janus-Pro-7B)
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