Donald Trump's "wake-up call" regarding the Chinese AI model, DeepSeek, follows Nvidia's staggering $600 billion market value loss. DeepSeek's emergence triggered a sharp decline in AI-focused company stocks. Nvidia, a GPU market leader crucial for AI model operation, suffered the most significant single-day loss in Wall Street history, with a 16.86% share drop. Microsoft, Meta, Alphabet, and Dell Technologies also experienced substantial declines.
Sheldon Fernandez of DarwinAI highlighted DeepSeek's potential disruption: "It performs as well as, and in some cases better than, leading Silicon Valley models, but with a fraction of the resources." This affordability, offering comparable features for free or at a significantly lower cost than subscription-based models, challenges established business models and valuations.
Trump, however, offered a more optimistic perspective, suggesting DeepSeek could ultimately benefit the U.S. by reducing development costs while achieving similar results. He emphasized the nation's continued AI dominance.
Despite DeepSeek's impact, Nvidia retains a $2.90 trillion valuation. The upcoming release of its RTX 5090 and RTX 5080 GPUs further underscores its market strength, evidenced by consumers braving inclement weather to secure pre-release purchases.
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