Nvidia Stock Loses 20% of Its Value After Release of Vastly Superior Chinese AI

This is nearly as bad as $TRUMP

A few days ago, China released an AI that requires a fraction of the computing power of the current models being produced in the West.

Along with humiliating the US tech sector in a way that is virtually unimaginable, as well as demonstrating again that China is a much better country than the United States, this means that people no longer need hundreds of billions of dollars’ worth of Nvidia chips to run AI.

RT:

Nvidia’s stock plummeted 17% on Monday, erasing approximately $589 billion from its market capitalization and marking the largest single-day loss in US corporate history. The sharp decline follows concerns over mounting competition from the Chinese artificial intelligence firm DeepSeek.

The selloff was part of a broader tech downturn that saw the Nasdaq Composite fall 3.1%, its worst day since December. Nvidia shares closed at $118.58, marking their most significant drop since March 2020 during the early days of the Covid-19 pandemic. Monday’s plunge also dethroned Nvidia as the world’s most valuable publicly traded company, at $2.9 trillion, pushing it back to third place behind Apple and Microsoft.

The downturn was triggered by DeepSeek’s launch of an open-source R1 model, which the company claims was trained in just two months at a fraction of the cost required by US-based firms like OpenAI. This development has raised questions about the sustainability of high AI-related spending, particularly on Nvidia’s graphics processing units (GPUs) that dominate the AI chip market.

Basically, Nvidia was manipulating the AI industry to make it so the maximum amount of Nvidia chips were needed for the AI’s processing.

This is the way “perverse incentives” work in the United States, where there is no real ability of small companies to compete with large ones due to large companies writing government regulations designed to crush all competition.

China does the opposite. While allowing very big companies to exist, the Chinese ensure that it is the big company that is at a disadvantage, as they understand that giving big companies the advantage smashes innovation.

America is going to keep on losing like this as long as it remains a decadent and depraved country which values liberal values over human lives.