TBH, I’m not sure.
DeepSeek is an AI powered chat application similar to ChatGPT. As far as I can tell in all of the media reports I have read, and it has been several (eye roll), DeepSeek is not more powerful than ChatGPT.
Instead, it was is reported to be significantly cheaper to build and train.
Building and training AI models requires lots of hardware like computer chips that Nvidia manufactures and sells, and lots of data.
Apparently, as described in this article from the BBC, the creators of DeepSeek used Nvidia chips and potentially lower cost chips as part of the network and model.
Plus, things are cheaper in China.
So the fact that a powerful AI model was built with fewer Nvidia chips hints at a lower demand for these chips, hurting Nvidia’s projections, and the stock market.
So, I think everyone can chill out, and remember that this is a natural part of technology innovation and competition. It will push other companies to lower costs.