DeepSeek, a Chinese AI startup, unveiled a powerful AI model that competes with OpenAI's GPT-4, using less computational power.
Investors were concerned about the potential decrease in demand for NVIDIA's high-powered GPUs, causing a $600 billion plunge in the company's value.
Despite the market reaction, retail investors purchased a record $562 million in NVIDIA shares, showing confidence in the company's long-term prospects.
The crash raises questions about the future of AI's growth, NVIDIA's ability to adapt, and whether AI models will rely less on GPUs, impacting the semiconductor industry.