Seismic Announcement by a Chinese Artificial Intelligence (AI) Company Sends US stocks Plummeting. | Are America’s Perceived AI & Tech Dominance, Supremacy & Invincibility being Challenged Openly by China? (Video)
Are America’s Perceived AI & Tech Dominance, Supremacy & Invincibility being Challenged Openly by China?
US stocks dropped sharply Monday morning after a surprise advancement by Chinese artificial intelligence (AI) company.
Chinese start-up DeepSeek announced the release of a large language model (LLM) that it trained for only two months and at a cost of less than $6 million. The idea here is that customers may not need Nvidia’s most expensive and top-performing chips to train their LLMs — and that could result in a drop in revenue for the tech giant.
Nvidia (NASDAQ: NVDA) is an AI company that had soared over the last two years, thanks to its dominance in artificial intelligence (AI) in a market set to reach $1 trillion by the end of the decade from about $200 billion today. Investors had flocked into Nvidia betting on the company’s ability to win in this fast-growing market and deliver both earnings growth and share performance over time.
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Survivability Podcasts™ Episode:
- Are America’s Perceived AI & Tech Dominance, Supremacy & Invincibility being Openly Challenged by China?
- What Unmitigated New Risks & New Opportunities to Businesses in America and the world does this create?
However, The DeepSeek’s announcement this week prompted investors to reconsider the competitive element of the AI market and Nvidia’s leadership creating doubts over its prospects in the high-growth market. As a result, Nvidia stock tumbled nearly 17% in one trading session.
See the CNN Video report below.
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