Sanctions are failing in a huge way to stop chips like the m800 from making it into China. Not only that but the M100 that we are selling to China is essentially a detuned M800. It’s hard for investors to keep burning mountains of cash on US AI companies that charge an arm and a leg for their services when a Chinese model comes out totally free and doing just as well as the premium offerings. If investors aren’t willing to burn cash, the cash burning dumpster called Nvidia takes a hit. That’s why the stock is dropping.
Comment on Why did Nvidia stock drop with R1 hype?
gigachad@sh.itjust.works 1 week ago
The stock market is crazy and it doesn’t always act rational. Now that I said this, I think the reason is more a question of Chinese vs US technical superiority. In theory, China has no access to the high technology AI chips from NVIDIA, due to sanctions. This must mean that Deepseek was developed with cheaper chips, and NVIDIA chips are not necessary for training LLMs.
JiveTurkey@lemmy.world 1 week ago
j4k3@lemmy.world 1 week ago
That is what my intuition was looking for but not finding. I wasn’t thinking about the ban and implications. This makes much more sense.