Investing.com– NVIDIA Corporation (NASDAQ:) shares fell over 5% in 24 hour markets, RobinHood data showed on Sunday evening, amid growing questions over the need for major capital spending on artificial intelligence after the release of China’s DeepSeek.
Nvidia slid 5.2% to an indicated $135.20, RobinHood data showed, with shares extending a 3.2% loss from Friday.
The AI darling was rattled by the release of DeepSeek R1- a large-language model that claims to rival offerings from ChatGPT and Meta (NASDAQ:) while using a fraction of their budgets.
DeepSeek- which is funded by Chinese quant fund High-Flyer- reportedly had access to about 50,000 of Nvidia’s H100 AI GPUs, which are from the last generation of advanced AI chips.
DeepSeek’s release raised concerns that technology firms could adopt leaner, more capital-efficient approaches to AI development, necessitating lower amounts of capital expenditure on data centers…
