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'I’m buying Nvidia stocks': DeepSeek’s cheap AI won’t doom NVIDIA, says former Intel CEO Pat Gelsinger

Jan 29, 2025 - businesstoday.in
The Chinese AI start-up DeepSeek has disrupted the tech industry with its low-cost AI assistant, significantly cheaper to train and operate than OpenAI’s models. This announcement led to a massive drop in Nvidia’s market value as investors feared a decline in demand for its processors. However, former Intel CEO Pat Gelsinger argues that the market’s reaction is misguided. He believes that lower costs will expand the AI market, constraints can drive innovation, and openness fosters progress. Gelsinger views DeepSeek’s breakthrough as beneficial for the AI industry and companies like Nvidia, predicting broader AI integration and increased demand for advanced processors in data centers.

Gelsinger’s optimism is echoed by others who see the AI tech selloff as an opportunity to invest in high-quality tech stocks. Despite DeepSeek’s cost-efficient models, the need for high-end processors remains as companies like OpenAI and Anthropic scale up their models. The future of the AI hardware market will likely balance affordability with cutting-edge performance. Gelsinger encourages embracing innovation and openness, viewing the current situation as a chance to grow and adapt rather than panic.

Key takeaways:

  • DeepSeek's low-cost AI assistant has significantly impacted the tech market, causing a major drop in Nvidia's market value due to fears of reduced demand for its processors.
  • Pat Gelsinger argues that lower AI costs will expand the market, leading to broader integration and increased demand for computing power.
  • DeepSeek's success highlights the importance of innovation under constraints and the benefits of an open-source approach in AI development.
  • Despite DeepSeek's advancements, the demand for high-end processors in data centers remains strong, presenting opportunities for companies like Nvidia.
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