Nvidia faces a historic plunge in its stock price, dropping nearly 17% and erasing over $500 billion in market cap, raising concerns about the future demand for its GPUs. This downturn coincides with the launch of DeepSeek's R1 model, which promises to reduce AI training costs significantly. As investors fear that AI companies may no longer require the expansive computing power associated with Nvidia's products, rival firms also suffered declines, indicating a broader market impact. The situation reflects changing dynamics in the AI industry, driven by new software innovations and funding initiatives.
Nvidia's share price plunged nearly 17%, potentially marking a historic one-day loss, driven by fears that AI companies may need less computing power than anticipated.
The launch of DeepSeek's R1 model, which is significantly cheaper to train than competitors, raised concerns among investors about the future demand for Nvidia's GPUs.
Collection
[
|
...
]