After a record stock drop, Nvidia responded to the emergence of Chinese startup DeepSeek, which claims its AI chatbot rivals top models from OpenAI at a lesser cost. This caused turmoil in the stock market, leading to a tech sector downturn, estimated at a $1 trillion loss. Nvidia praised DeepSeek's advancements in Test Time Scaling, a method enabling AI models to simulate and authenticate responses for enhanced reliability. The situation is complicated by DeepSeek's use of a variant of Nvidia's H100 chip, restricted by US export laws, highlighting ongoing industry tensions.
"DeepSeek's work illustrates how new models can be created using that technique, leveraging widely-available models and compute that is fully export control compliant."
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