Nvidia, once considered invincible with its dominance in AI chips, is now facing a significant challenge. A Chinese company, DeepSeek, introduced an AI model so inexpensive that it nearly caused a $600 billion loss in Nvidia’s stock value, marking the biggest one-day drop in U.S. stocks. This revelation has investors questioning whether Nvidia’s grip on the market is as secure as previously believed. While the threat isn’t insurmountable yet, it does raise alarms about potential competition and shifting power dynamics in Silicon Valley’s tech landscape.
Source: https://www.economist.com/business/2025/01/28/nvidia-is-in-danger-of-losing-its-monopoly-like-margins