China's DeepSeek AI Model Shocks the World: Should You Sell Your Nvidia Stock?

Could Nvidia's (NASDAQ: NVDA) magical two-year run be coming to an end? Up until now, there has been insatiable demand for Nvidia's latest and greatest graphics processing units (GPUs). As the artificial intelligence races heated up, big tech companies and start-ups alike rushed to buy or rent as many of Nvidia's high-performance GPUs as they could in a bid to create better and better models.But last week, Chinese AI start-up DeepSeek released its R1 model that stunned the technology world. R1 is a "reasoning" model that has matched or exceeded OpenAI's o1 reasoning model, which was just released at the beginning of December, for a fraction of the cost.Being able to generate leading-edge large language models (LLMs) with limited computing resources could mean that AI companies might not need to buy or rent as much high-cost compute resources in the future. The consequences could be devastating for Nvidia and last year's AI winners alike.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool