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Fortune

Beatrice Nolan

Chinese AI startup DeepSeek is threatening Nvidia's AI dominance

Nvidia DeepSeek Big Tech Fortune Meta

DeepSeek's new AI model has sparked concerns about Nvidia's dominance in the AI hardware market, causing a drop in the chipmaker's stock and raising questions about the future of high-performance AI chips.

A new AI model from Chinese company DeepSeek is hitting the stock of AI boom darling Nvidia. DeepSeek can run on less-advanced chips, and investors seem to be questioning whether demand for Nvidia's high-end chips is overdone. The chipmaker's shares took a beating in premarket trading, dropping 13%.

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