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That news sent NVIDIA stocks plummeting and caused the stock of several tech giants to drop.
Why has NVIDIA stock fallen?
NVIDIA’s loss in value comes immediately after DeepSeek announced the R1 language model.
That model is said to outperform OpenAI’s models while requiring only 3% of the cost.
Ironically, DeepSeek trained its R1 model on NVIDIA GPUs.
Training AI models has been prohibitively expensive up to this point.
Reportedly,OpenAI lost $5 billion in 2024and the company spends$700,000 per day to run ChatGPT.
