Nafidia, which rose to the top of the stock market by selling computer chips that feed the world of artificial intelligence in the world, was dealt with to a difficult fact by a small Chinese company that has shown that it could do more with what makes NVIDIA less.
On Monday, NVIDIA shares decreased by 17 percent after the company, called Deepseek, showed that they could train the advanced AI system with a small part of the NVIDIA chips that were used in the past by Openai, the Chatgpt maker. The company has lost nearly $ 600 billion in the market value, as it was the worst day of its trading since the sale of the epidemic in March 2020.
Deepseek has challenged the technology industry consensus as in order to build a larger and better AI systems, companies have to spend billions and billions of dollars on new databases. In the midst of these data centers, it will be the only thing that, perhaps yet, no Amnesty International project can do without: the huge cache of NVIDIA chips.
Silicon Valley Company controls, according to some estimates, in 90 percent of the market for specialized chips used to build artificial intelligence systems. This has achieved a wonderful way since Openai Chatgpt was released in late 2022. Over the past two years, NVIDIA’s revenues have jumped by more than 200 percent to 126 billion dollars, while the total value of the company has rose 700 percent of the market closing day Friday, its peak at $ 3.62 trillion in November.
But the apparent Deepseek penetration showed that NVIDIA chips’s appetite may not be limited as some imagined just a week ago. Although NVIDIA is still in an unenviable position – there is no slim competition for artificial intelligence chips – companies that were buying their technology may slow their spending.
“Before, Amnesty International was the greatest, best and faster. Patrick Marisid, CEO of Mor Insights & Strategy, a technology and conductor research company, said,“ Frames are the largest capabilities of artificial intelligence greater. “But this was very fast, which raises questions about the period on which NVIDIA applies and whether people would need the largest number of its chips in the future.”
Deepseek also reduced shares of other conductors, including Broadcom, Micro Technology, and Taiwan Semiconductor Inc.
Deepseek’s arrival crystallized from his anxiety, which was already a shadow on NVIDIA’s work. Late last year, artificial intelligence leaders began to warn that the improvements on Chatbots were slowing. They have previously relied on a simple formula for providing developments: executing as much data as possible from the Internet and pushing to large language models-technology that occupies Chatbots-on pairs computers.
But this concept, which is It is known in the industry as limiting lawsI began to get out of Saleh because technology companies run out of data. This has prompted companies to start trying new technologies to maintain improvement of their systems. Questions from NVIDIA investors were also fed about the repercussions of her business.
At Ces Technology Trade in January, Jensen Huang, CEO of NVIDIA, said that the new technologies were “leading the massive demand for NVIDIA chips”. He said that companies use NVIDIA chips for energy models that do more thinking about data centers, which means that there will be more demand for their technology, not less.
In a statement on Monday, Millen Manualindan, a spokeswoman for NVIDIA, said Deepseek shows that these new technologies are working. “Deepseek is excellent progress of artificial intelligence.”
But investors were observing to see if the change in the way Amnesty International would have surpassed NVIDIA’s business, and Deepsek’s success speaks to uncertainty about whether it is cheaper to build and deliver artificial intelligence systems.
“This was something we are working on,” said Daniel Newman, CEO of Futurum Group, a technical research company. “Everyone was following this goal because the costs of training artificial intelligence were very high.”
Not everyone is convinced that the rise of Nvidia stops. It was a volatile store and It fell in August by more than 10 percent On reports, the company will delay shipping the latest artificial intelligence chip. She turned over later.
In a memorandum of investors on Monday, Staice Rachton, semiconductor analysts in Bernstein, said that Dibsic had spent money on building its system more than he claimed. He added that the ability to build more artificial intelligence systems more efficiently must mean more demand because more companies can invest in them.
“It seems exaggerated,” said Mr. Rashton, who was panic during the weekend.
Changes in NVIDIA value are the latest testimony on how artificial intelligence continues to raise the stock market. Last year, Microsoft Apple was replaced as a company in the world most valuable for its early push to artificial intelligence in June, and NVIDIA has risen to the past two companies to demand the crown.
Now, Apple has returned to the forefront after she released her artificial intelligence system called Apple Intelligence for iPhone. But there are signs that it may not carry this position for a long time. This month, IOne of the signing capabilities has disrupted – Collecting and summarizing news notifications – After customers and companies complained that their programs were to distort news reports.
Mr. Newman said: “There was no winner here.” “The tools were good. But if everyone was able to make better models at lower costs, people may start adopting artificial intelligence.”
