Nvidia's share price fell some 17 percent on Monday, wiping $600 billion off the GPU company's valuation.
The world's most valuable corporation saw its share price plummet on the release of DeepSeek's latest model, which appeared to prove that it was possible to train efficient models using fewer GPUs.
However, after a record-breaking panic sale that impacted most tech companies, Nvidia's share price has recovered by around eight percent today, undoing nearly half of the losses.
While DeepSeek used fewer GPUs for training, Nvidia proponents argue that it will only lead to more AI use, and therefore more GPU-based inference. Others simply bought the dip in a company that has seen unprecedented share price growth since the AI boom.
“DeepSeek’s work illustrates how new models can be created” using the Test Time Scaling technique, Nvidia said in a statement about the Chinese company's new model. They added that DeepSeek was “leveraging widely available models and compute that is fully export control compliant.”
Uncertainty remains over how much compute DeepSeek actually has, and whether it includes export-restricted H100s.
Nvidia's one-day market cap drop was worth more than the entirety of Oracle, Intel, AMD, and a number of other major companies. It was also more than the total value that OpenAI and President Donald Trump have pledged for The Stargate Project.
