Will DeepSeek's Artificial Intelligence Model Destroy Nvidia's Valuation?
Did DeepSeek's artificial intelligence (AI) model really cost less than $6 million to make? If that's the case, it makes you wonder what big tech plans to spend tens of billions of dollars on this year, not to mention the massive $500 billion Stargate project that President Trump announced last month.
DeepSeek's numbers may be grossly underestimated, however, with a recent report suggesting that the company may have spent well over $500 million just on its hardware. It'll inevitably take time before investors get a good grasp on just how concerning of a problem DeepSeek's AI development is or isn't for the tech sector.
In the meantime, one stock that's been declining on these developments is chipmaking giant and AI figurehead Nvidia (NASDAQ: NVDA). The stock has been synonymous with AI development, as its chips have been viewed as crucial for companies developing next-gen models. The news related to DeepSeek has already resulted in some sizable losses to Nvidia's market cap, but could this be just the start -- is more of a sell-off coming?
Source Fool.com
