Nvidia, a leading chipmaker, experienced a significant stock drop following a breakthrough by a Chinese AI company.
DeepSeek demonstrated the ability to train advanced AI systems using far fewer Nvidia chips than previously thought necessary.
This development challenges the industry's belief that massive chip investments were essential for AI progress, impacting Nvidia's market dominance.
The future demand for Nvidia's chips, while still substantial, might slow down, prompting investors to reconsider their valuations.
