The AI Model That Wiped Out $589 Billion of NVIDIA’s Value in One Day

How DeepSeek R1 is Changing the Game

Source — Google.com

If you are not a Medium Member, here is the Friend Link of the story.

In a single day, NVIDIA lost $589 billion in market value. The culprit? DeepSeek R1 — a revolutionary AI model that has sent shockwaves through the tech industry. Here’s why this breakthrough isn’t just about better AI — it’s about rewriting the rules of the game.

1. The Disruption: Why NVIDIA Took the Hit

NVIDIA’s dominance in the AI market has been tied to its high-performance GPUs, the gold standard for training large language models (LLMs). DeepSeek R1, however, changes the equation by proving that cutting-edge AI doesn’t need the most advanced and expensive hardware.

• DeepSeek’s Secret Sauce:
• Efficient Training: DeepSeek R1’s innovative reinforcement learning (RL) algorithm eliminates the dependency on costly, state-of-the-art GPUs.
• Hardware Flexibility: By optimizing its model for less powerful hardware, DeepSeek R1 slashed development costs, challenging NVIDIA’s position as the go-to provider for AI training infrastructure.
• Impact: Investors saw this as a warning that reliance on NVIDIA’s…