The “Nvidia Killer” Has Arrived: How Deep Seek Wiped $600 Billion Off the Market and Why the West Is Terrified
If you own Nvidia stock, don’t look at your portfolio today. Deep Seek hit back.
The AI chip giant—the company that seemed invincible for three years—just took a historic $600 billion uppercut. And it didn’t come from Google, Microsoft, or Apple. It came from a relatively unknown Chinese startup called Deep Seek.
DeepSeek released its new model (R1) this week, and the results are terrifying for Silicon Valley. Not only is it comparable to ChatGPT, but it was reportedly built for pennies on the dollar. It uses less computing power and fewer chips, proving you don’t need a trillion-dollar data center to compete.
The “Efficiency” Panic This destroys the entire narrative of the AI boom. If you can build “Super AI” without buying thousands of Nvidia’s expensive H100 chips, then Nvidia’s monopoly is over. That is why the market is crashing.
The Davos Defense The panic is so real that Google DeepMind CEO Demis Hassabis had to go on TV at the Davos World Economic Forum today to calm everyone down. He claimed Chinese firms are still “six months behind.” But looking at the charts, Wall Street isn’t buying it.
The Verdict: The AI Arms Race just changed. It’s no longer about who has the most chips; it’s about who needs the fewest. And right now, China is winning the efficiency war.
