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Nvidia addressed the effectiveness of DeepSeek to reassure its investors.

Following the drop in stocks due to the success of DeepSeek, Nvidia issued a statement to investors.
Nvidia addressed the effectiveness of DeepSeek to reassure its investors.

After a significant drop in shares to $118.58 (-17%) following the success of DeepSeek, Nvidia issued a statement to investors expressing concerns that DeepSeek has caught up with competitors like OpenAI, despite using far fewer Nvidia chips than American companies. Nvidia's competitor, Advanced Micro Devices, also saw its shares decline by more than 6% to $115.01. This was reported by Reuters.

Nvidia stated that the achievements of the Chinese artificial intelligence firm DeepSeek demonstrate the utility of its chips in the Chinese market and that new chips will be needed in the future to meet the demand for DeepSeek's services.

They also noted that this situation illustrates how new models can be developed using widely available older generation chips, which are fully compliant with the export controls imposed by the United States. Thus, the company aims to show that even their not-so-new hardware is still highly effective.

Research papers from DeepSeek also indicate that about 2,000 Nvidia H800 chips, designed according to regulations in 2022, were used in the project's development.

As previously reported, Chinese DeepSeek has become the most popular artificial intelligence application in the United States, surpassing ChatGPT.