DeepSeek Proves Nvidia’s Importance in China’s AI Growth
Nvidia claims Chinese AI firm DeepSeek demonstrates the growing need for its chips. This comes despite export control challenges.
Stock Drops Amid Investor Concerns
Nvidia’s shares fell 17%, closing at $118.58. Investors worry DeepSeek matches rivals like OpenAI using fewer Nvidia chips.
AMD Also Affected
Nvidia’s competitor, Advanced Micro Devices (AMD), saw shares drop over 6%, ending at $115.01.
DeepSeek Uses Nvidia’s Export-Compliant Chips
DeepSeek utilized about 2,000 Nvidia H800 chips. These chips meet U.S. export rules implemented in 2022.
Export Controls Target China’s AI Growth
The U.S. aims to limit China’s AI and supercomputer advancements. The rules focus on preventing military applications.
DeepSeek’s Efficiency Impresses Experts
DeepSeek leverages fewer chips effectively. Nvidia says this highlights their ongoing role in powering AI innovation.
U.S. Firms Also Focus on Efficiency
Computing efficiency remains a priority for both U.S. and Chinese AI companies.
DeepSeek’s Long-Term Development
DeepSeek has years of experience in AI model-building, according to experts.
Inference Drives Chip Demand
AI inference, a critical step in user service, relies heavily on Nvidia’s GPUs and networking systems.
Nvidia’s New Chip Meets Regulations
Nvidia now sells the H20 chip, optimized for inference and compliant with export rules.
Expert Questions U.S. Policy Timeline
An expert predicts potential U.S. policy changes regarding Nvidia’s chip sales to China.
