From Financial Modeling Prep: 2025-01-28 05:39:29

Nvidia’s shares plummeted 17%, losing $589 billion, after Chinese AI startup DeepSeek introduced its cost-effective R1 model, raising concerns about U.S. tech giants’ AI investments.

DeepSeek’s R1 model promises high performance at a fraction of the cost, utilizing Nvidia’s H800 chips and Test Time Scaling technology, impacting tech-heavy indices.

Analysts question Nvidia’s growth prospects post-DeepSeek’s disruptive model, cautioning against prolonged cost reductions in the AI sector.

DeepSeek’s cost-efficient model challenges the AI industry’s spending norms, prompting a reevaluation of costly AI infrastructure reliance and investment trends.

DeepSeek’s innovation may reshape AI cost dynamics, urging industry leaders to adapt to new competitive pressures amidst market uncertainties. Investors are advised to monitor earnings and AI-related spending updates for insights.



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