Techonology

Nvidia reel after Deepsek’s AI success

NVIDIA, which reached the top of the stock market by selling computer chips promoting the world’s artificial intelligence boom, a difficult reality was checked by a small Chinese company, showing what this NVIDIA makes.

On Monday, Nvidia shares declined by the company 17 percent after the company, called Deepsek, it is shown that it can train a state -of -the -art AI system with a fraction of Nvidia chips, which can be the manufacturer of chat Was used in the past by openi. The company lost about $ 600 billion in the market price since selling epidemic in March 2020.

The release of Deepsac challenged the consent of a technical industry that to create a large and better AI system, companies would have to spend billions and billions of dollars at new data centers. There would be a thing in the center of the data centers that perhaps so far, no AI project could be done without: a large cash of NVidia’s chips.

The Silicon Valley company, by some estimates, controls 90 percent of the market for special chips used for the manufacture of AI systems. This has been a remarkable run since Openai released Chatgpt at the end of 2022. Over the last two calendar years, NVIDIA revenue has exceeded 200 percent, which has increased to more than 200 percent to $ 126 billion, while the total value of the company has rocked around 700 percent of Friday market, in November. $ 3.62 peak on trillion.

But the clear success of Deepsek has shown that hunger for Nvidia’s chips may not be as infinite as some had imagined a week ago. While Nvidia is still in an important position – its AI chips have very little competition – companies that are buying its technology can slow down their expenses.

“Earlier, AI was big, better, fast. Large chips are equal to large AI capabilities, “Moor Insights and Strategy CEO Patrick Moorehead said, a tech and semiconductor research firm. “But it was so early that it raises the question about how long it is true for Nvidia and will people need many chips in the future.”

The Deepsek release also pulled shares of other semiconductor companies, including Broadcom, Micron Technology and Taiwan Semiconductor Manufacturing Ink.

The arrival of Deepsek has christlifted an concern that was already putting a shadow on NVidia’s business. At the end of last year, AI leaders began to warn that the improvement in chatbott was slowing down. They rely on a simple formula to give advances earlier: reducing as much data from the Internet and pushing into large language models-which technology chatbots-sometimes on computers.

But this concept, known as scaling laws in the industry, has begun to get out of favor as tech companies are running out of data. It has started using companies with new techniques to improve its systems. This has given air to questions from Nvidia investors about the results for their business.

At the CES Technology Trade Show in January, Nvidia Chief Executive Officer Jensen Huang said the new technology was “a huge demand for NVidia’s chips”. He said that companies are using NVIDIA chips for power models that argue more in data centers, which means that there will be more demand for its technology, no less.

In a statement on Monday, NVIDIA spokesperson Mylene Mangalindon said that Deepsek suggests that they are working new techniques. He said that “Deepsek is an excellent AI advancement.”

But investors are looking to see if AI is being changed, it will throtte NVidia’s business, and Deepsek’s success talks about uncertainty whether it is to create and distribute AI system Will be cheaper.

Daniel Numan, Chief Executive Officer of Tech Research firm Future Group, said, “This was something we are working.” “Everyone is following this goal because the cost of AI training was very high.”

Not everyone is convinced that the rise of Nvidia is stalled. Its stock has been unstable and more than 10 percent of the report in August, the company will delay shipping of its latest artificial intelligence chip. Later it overturned.

In a note for investors on Monday, Stacey Rasgon, a semiconductor analysts of Bernstein Research, said that Deepsek claimed that it spent more money to create his system than claiming it. He said that being able to create more AI systems should be more efficiently demanded as more companies can spend to invest in them.

Nervousness over the weekend, Mr. Rasgon said, “Looks overblown.”

The change in the value of Nvidia is the latest will how AI continues the stock market. Last year, Microsoft replaced Apple as the world’s most valuable company for its early push in AI in June, NVIDIA extended both companies to the past to claim Crown.

Now, Apple has released iPhones called Apple Intelligence after releasing its own AI system. But there are signs that it cannot catch that situation for a long time. This month, it disabled one of the signature capabilities – collecting and summering news information – customers and companies after complaints that its software was incorrectly presenting news reports.

“There is not a winner here,” said Mr. Namman. “The equipment is just fine. But if everyone can make a better model at low cost, people can start adopting AI ”

Listen
#Nvidia #reel #Deepseks #success

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *