Nvidia falls 14% in premarket trading as China's DeepSeek triggers global tech sell-off

Good. That shit is way overvalued.

There is no way that Nvidia are worth 3 times as much as TSMC, the company that makes all their shit and more besides.

I'm sure some of my market tracker funds will lose value, and they should, because they should never have been worth this much to start with.

Shovel vendors scrambling for solid ground as prospectors start to understand geology.

...that is, this isn't yet the end of the AI bubble. It's just the end of overvaluing hardware because efficiency increased on the software side, there's still a whole software-side bubble to contend with.

Okay seriously this technology still baffles me. Like its cool but why invest so much in an unknown like AIs future ? We could invest in people and education and end up with really smart people. For the cost of an education we could end up with smart people who contribute to the economy and society. Instead we are dumping billions into this shit.

I think this prompted investors to ask "where's the ROI?".

Current AI investment hype isn't based on anything tangible. At least the amount of investment isn't, it is absurd to think that trillion dollars that was put in the space already, even before that Softbanks deal is going to be returned. The models still hallucinate as it is inherent to the architecture, we are nowhere near replacing the workers but we got chatbots that "when they work sometimes, then they are kind of good?" and mediocre off-putting pictures. Is there any value? Sure, it's not NFTs. But the correction might be brutal.

Interestingly enough, DeepSeek's model is released just before Q4 earning's call season, so we will see if it has a compounding effect with another statement from big players that they burned massive amount of compute and USD only to get milquetoast improvements and get owned by a small Chinese startup that allegedly can do all that for 5 mil.

My understanding is that DeepSeek still used Nvidia just older models and way more efficiently, which was remarkable. I hope to tinker with the opensource stuff at least with a little Twitch chat bot for my streams I was already planning to do with OpenAI. Will be even more remarkable if I can run this locally.

However this is embarassing to the western companies working on AI and especially with the $500B announcement of Stargate as it proves we don't need as high end of an infrastructure to achieve the same results.

I'm so happy this happened. This is really a power move from China. The US was really riding the whole AI bubble. By "just" releasing a powerful open-source AI model they've fucked the not so open US AI companies. I'm not sure if this was planned from China or whether this is was really just a small company doing this because they wanted to, but either way this really damages the western economy. And its given western consumers a free alternative. A few million dollars invested (if we are to believe the cost figures) for a major disruption.

Bizarre story. China building better LLMs and LLMs being cheaper to train does not mean that nVidia will sell less GPUs when people like Elon Musk and Donald Trump can't shut up about how important "AI" is.

I'm all for the collapse of the AI bubble, though. It's cool and all that all the bankers know IT terms now, but the massive influx of money towards LLMs and the datacenters that run them has not been healthy to the industry or the broader economy.

It still rely on nvidia hardware why would it trigger a sell-off? Also why all media are picking up this news? I smell something fishy here...

Finally a proper good open source model as all tech should be

Hm even with DeepSeek being more efficient, wouldn't that just mean the rich corps throw the same amount of hardware at it to achieve a better result?

In the end I'm not convinced this would even reduce hardware demand. It's funny that this of all things deflates part of the bubble.

Okay, cool...

So, how much longer before Nvidia stops slapping a "$500-600 RTX XX70" label on a $300 RTX XX60 product with each new generation?

The thinly-veiled 75-100% price increases aren't fun for those of us not constantly-touching-themselves over AI.

What the fuck are markets when you can automate making money on them???

Ive been WTF about the stock market for a long time but now it's obviously a scam.

Great, a stock sale.

Nice. Fuck you Nvidia.

Was watching bbc news interview some American guy about this and wow they were really pushing that it's no big deal and deepseek is way behind and a bit of a joke. Made claims they weren't under cyber attack they just couldn't handle having traffic etc.

Kinda making me root for China honestly.

Try asking DeepSeek something about Xi Jinping. "Sorry, it's beyond my current scope' :-) Wondering why even it cannot cite his official party biography :-)

Well, you still need the right kind of hardware to run it, and my money has been on AMD to deliver the solutions for that. Nvidia has gone full-blown stupid on the shit they are selling, and AMD is all about cost and power efficiency, plus they saw the writing on the wall for Nvidia a long time ago and started down the path for FPGA, which I think will ultimately be the same choice for running this stuff.

I've never been so happy to cancel a subscription.

Good. Nvidia has grown greedy and fat.

So, I get that the hardware is needed for training the models and that's why the stock price fell. But it's also required to run the models, and this news is only going to increase the supply of AI services. It seems to me that this isn't a big threat to the companies that sell AI hardware.

With the amount governments seem to be on the AI train I'm becoming more and more worried about the fall out when the hype bubble does burst. I'm really hoping it comes sooner rather than later.

It's fun seeing these companies take a hit and the bubble deflate, but long term won't this just make AI a more alluring form of enshittification to a wider audience?

nvidia falling doesn't make much sense to me, GPUs are still needed to run the model. Unless Nvidia is involved in its own AI model or something?

Good. Let's keep this ball rolling.

This has nothing to do with DeepSeek. The world has run out of flashy leather jackets for Jensen to wear, so nvidia is toast.

Rip lol

ROFL 🤣😂🤣😂🤣😂🤣 eat shit, Huang

You love to see it!