Nvidia Corp. experienced a substantial market cap decline of $590 billion after the revelation of China's DeepSeek AI capabilities. CEO Jensen Huang lost $20 billion in one day, now with a net worth of $101 billion. While Nvidia reported a revenue growth of 94%, questions loom over the sustainability of this growth, especially in light of DeepSeek's efficiency and low training cost of under $6 million, compared to OpenAI's expense of over $100 million. This situation challenges Nvidia's position as the primary provider of AI processors, as lesser hardware requirements may emerge in AI applications.
Nvidia's market cap dropped $590 billion as the tech world acknowledged the capabilities of China's DeepSeek AI, critically impacting the company's future in AI support.
CEO Jensen Huang saw a staggering $20 billion loss in net worth from the market downturn, yet he remains the 15th richest individual globally according to the Bloomberg Billionaires Index.
DeepSeek's V3 and R1 models are being compared to OpenAI's latest releases, signaling a shift in the AI landscape that may require less processing power than previously thought.
DeepSeek's training cost of under $6 million starkly contrasts with the over $100 million cost for OpenAI's advanced models, indicating potential for more cost-effective AI solutions.
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