Donald Trump's "wake-up call" regarding the new Chinese AI model, DeepSeek, follows Nvidia's staggering $600 billion market value loss. DeepSeek's emergence triggered a sharp decline in AI-related stocks. Nvidia, a key player in GPU technology crucial for AI, suffered the most, experiencing a historic 16.86% share drop. Other tech giants like Microsoft, Meta, and Alphabet also saw significant losses, ranging from 2.1% to 4.2%, while Dell Technologies, an AI server manufacturer, fell 8.7%.
Sheldon Fernandez, co-founder of DarwinAI, commented to CBC News that DeepSeek "performs as well as, and in some cases better than, leading Silicon Valley models, but using a fraction of the resources." He further noted that its free access disrupts the business models underpinning the high valuations of many established companies.
Trump, however, offered a more optimistic perspective, suggesting DeepSeek could be beneficial for the US by potentially reducing costs while achieving similar results. He emphasized the US's continued AI dominance.
Despite DeepSeek's impact, Nvidia remains a substantial $2.90 trillion company. The upcoming release of the RTX 5090 and RTX 5080 GPUs is highly anticipated, with consumers already lining up in anticipation.
