In a rather unceremonious fashion, DeepSeek, a brainchild of a Chinese hedge fund, has managed to send shockwaves through the hallowed halls of Nvidia and the once indomitable crypto miner stocks.
Imagine, if you will, a side project with more restrictions than a Victorian corset, outperforming the darlings of AI research. Such is the curious case of DeepSeek.
DeepSeek Douses Nvidia’s Flames
Alack and alas, the once soaring Nvidia, which predicted AI agents would soon be worth more than a small country’s GDP, has been brought to its knees by this modest Chinese upstart.
And as for the mining stocks, well, they’ve been hit harder than a piñata at a child’s birthday party.
Not content with merely spooking Nvidia, DeepSeek has also managed to send the likes of Marathon and RIOT into a tizzy. These chaps, you see, are rather fond of Nvidia’s hardware, like a child with a shiny new toy.
Just last month, these firms were gleefully buying Bitcoin like there was no tomorrow. Now, they’re watching their stocks sink faster than a lead balloon. Cipher Mining, another unfortunate soul, saw its stock nosedive by a rather unseemly 25%.
Our dear friend, tech journalist Ed Zitron, opines that the AI bubble was as inflated as a politician’s ego:
“The AI bubble was a grand illusion, a fairy tale built on the premise that only the biggest models and the grandest GPUs could lead the way. DeepSeek, with its modest means, has popped that bubble, leaving investors to wonder if their billions were spent on anything more than hot air,” Zitron quipped.
It seems the real scandal is not DeepSeek’s AI prowess, but the fact that it achieved such results on a shoestring budget. A hedge fund’s pet project, no less!
Could it be that the American approach to AI is as misguided as a blindfolded driver in a go-kart race?
AI Investors in a Tizzy
Last week, President Trump, in a stroke of what could only be described as blind optimism, announced a colossal AI research initiative. Half a trillion dollars to brute-force AI into submission. How quaint.
DeepSeek, with its meager access to Nvidia chips, has shown that sometimes, less is more. Or perhaps, just enough.
Investors are now scratching their heads, pondering the age-old question: Did we really need all that fancy hardware? Or was it just an expensive hobby?
In one fell swoop, DeepSeek has sliced through the heart of the US AI sector like a hot knife through butter. Processing power, it seems, is not the holy grail after all. Nvidia, take note.
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2025-01-27 21:16