The Peter Zeihan Podcast Series AI Drama: DeepSeek, Nvidia, and China || Peter Zeihan
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Feb 7, 2025 A live Q&A session is set to engage listeners and spark lively discussions. There’s a buzz surrounding the claims from Chinese firm DeepSeek, which asserts it has developed a groundbreaking AI model at a much lower cost than rivals. This revelation has sent shockwaves through the AI market, leading to a noticeable drop in NVIDIA's stock. The implications for US and Chinese companies in the competitive AI and chip manufacturing landscape are profound, raising questions about future disruptions and geopolitical tensions.
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AI Market Volatility
- NVIDIA's stock dropped significantly after DeepSeek, a Chinese firm, claimed to develop a cheaper AI model.
- This event highlights the market's volatility and the potential for misinformation from both U.S. and Chinese tech companies.
Impact on Chip Supply Chain
- If DeepSeek's claim is true, the cheaper AI model could lessen concerns about the vulnerable chip supply chain.
- Rationing chip usage might become less necessary if training costs decrease significantly.
Sanctions and Chip Development
- DeepSeek reportedly used custom-built chips designed by NVIDIA to comply with sanctions.
- However, even these "dumbed-down" chips may have been too advanced, as the Biden administration later banned them.