NVIDIA breaks silence after biggest single-day loss of any company in history

NVIDIA has responded to the recent unveiling of DeepSeek's R1 model, which wiped approximately $1 trillion from tech companies on the stock market and approximately $600 billion from NVIDIA.

The unveiling of DeepSeek's R1 model sent shockwaves through the tech industry after the Chinese company revealed its chatbot was capable of rivaling OpenAI's ChatGPT but was built in just two months and for just $6 million, a mere fraction of what has been invested into ChatGPT. Moreover, the company claimed the model was trained on NVIDIA's less-advanced H800 chips. These factors caused a massive stir and pullback from spending in the tech space, resulting in $600 billion being wiped from NVIDIA, marking a 17% plunge on Monday, the biggest loss in the company's history.

Now, NVIDIA has responded to DeepSeek's R1 model, with a NVIDIA spokesperson telling CNBC on Monday, "DeepSeek is an excellent AI advancement and a perfect example of Test Time Scaling. DeepSeek's work illustrates how new models can be created using that technique, leveraging widely-available models and compute that is fully export control compliant." NVIDIA also believes that DeepSeek's new model and the technique it used to create it will only fuel the chipmaker more as the technique called Test Time Scaling will require an abundance of NVIDIA Graphics Processing Units (GPUs).

The unveiling of the R1 model and its cost-effective approach that allegedly rivals the esteemed competition in the space has thrown into question the billions of dollars being poured into tech companies for AI research and development.

"Inference requires significant numbers of NVIDIA GPUs and high-performance networking. We now have three scaling laws: pre-training and post-training, which continue, and new test-time scaling," added the NVIDIA spokesperson