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PC Gamer

Jeremy Laird

China's DeepSeek chatbot reportedly gets much more done with fewer GPUs but Nvidia still thinks it's 'excellent' news

Nvidia DeepSeek United States China CNBC Meta Microsoft OpenAI

SUQIAN, CHINA - JANUARY 27, 2025 - An illustration photo shows the logo of DeepSeek and ChatGPT in Suqian, Jiangsu province, China, January 27, 2025. (Photo credit should read CFOTO/Future Publishing via Getty Images).

China's new DeepSeek R1 language model has been shaking things up by reportedly matching or even beating the performance of established rivals including OpenAI while using far fewer GPUs. Nvidia's response? R1 is "excellent" news that proves the need for even more of its AI-accelerating chips.

If you're thinking the math doesn't immediately add up, the stock market agrees, what with $600 billion being wiped off Nvidia's share price this week.

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