"I’m going to be upfront with you here and say that 404 Media does not provide any financial advice and that if I had definitive answers to any of these questions I’d be playing the stock market instead of blogging, but in a day when the takes are going to come fast and furious my take is this: The AI industry continues to develop very fast, it’s hard to extrapolate how it’s all going to unfold based on single event, even if it’s monumental, and the fact that DeepSeek comes from China, a perceived adversary to the United States/the West is making hawks and xenophobes, and tankies foam at the mouth.

Let’s take a deep breath and start with the biggest headline, which is that Nvidia stock dropped over 12 percent early this morning, its worst performance since 2020. GPU maker Nvidia became a trillion dollar company because it is largely making the chips that power the generative AI boom. These are not only the chips that people need to generate text, images, audio etc locally on their machines, but the massive training clusters of thousands of chips that these foundational models are trained on. In July, for example, Elon Musk proudly announced that xAI started training “the most powerful AI training cluster in the world,” composed of 100,000 Nvidia H100s."

https://www.404media.co/deepseek-mania-shakes-ai-industry-to-its-core/

#DeepSeek #AI #GenerativeAI #DeepSeekR1 #BigTech #China #SiliconValley #Nvidia