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NRIPage | Articles | Pat Gelsinger Reacts to DeepSeek’s AI Breakthrough: “Open Wins Every Time | Get Indian Desi Visa & Immigration News in USA. Navigate Visa & Immigration Processes with Ease - NRI Page
AI Revolution Sparks Market Shakeup: DeepSeek’s Breakthrough and Nvidia’s $600 Billion Drop
The artificial intelligence (AI) industry is evolving at a rapid pace, with investors closely watching every major development. The latest shockwave came from Chinese AI startup DeepSeek, which unveiled an AI model reportedly 20 to 50 times cheaper to train and operate than OpenAI’s models. This announcement sent ripples through the stock market, leading to a staggering $600 billion drop in Nvidia’s market value. Investors reacted with concern, fearing that more cost-effective AI models could dampen the demand for Nvidia’s high-performance processors.
Industry Veteran Pat Gelsinger Sees Opportunity
Despite the market’s initial panic, Pat Gelsinger, former CEO of Intel and a seasoned tech industry leader, views DeepSeek’s breakthrough as a net positive for AI. In a LinkedIn post, Gelsinger dismissed fears that cheaper AI models would hurt computing power demand. Instead, he argued that making AI more affordable will drive broader adoption, ultimately increasing the need for high-performance processors.
"The market reaction is wrong—lowering the cost of AI will expand the market. Today, I’m a buyer of Nvidia and AI stocks, happy to take advantage of lower prices," Gelsinger stated.
Key Takeaways from Gelsinger’s Perspective
Lower AI Costs Expand the Market – Gelsinger compared the situation to past tech revolutions, such as the rise of personal computers and mobile devices. As technology becomes more affordable, adoption surges, leading to overall industry growth.
Innovation Thrives Under Constraints – Despite challenges like export restrictions and limited access to advanced hardware, DeepSeek’s success underscores how necessity drives innovation. Many of the most significant breakthroughs in computing have emerged under similar conditions.
The Power of Open AI – Gelsinger warned against closed AI ecosystems, arguing that proprietary models could stifle progress and transparency. He praised DeepSeek for embracing an open-source approach, fostering collaboration and scrutiny within the AI community. “Open wins every time it is given a proper shot,” he wrote. “AI is much too important for our future to be controlled by a single closed ecosystem.”
Market Analysts See Buying Opportunity
Industry experts echo Gelsinger’s optimism. Daniel Morgan, senior portfolio manager at Synovus Trust Company, views the AI tech selloff as an opportunity. “The real money in AI is in providing chips for data centers,” he said in an interview with Reuters. “Overall, today’s AI tech selloff presents a chance to add high-quality tech shares at a discount.”
As the AI industry continues to evolve, DeepSeek’s advancement highlights both the potential for disruption and the long-term growth trajectory of AI-driven computing power. Investors may soon recognize that, rather than diminishing demand, more accessible AI could drive the next wave of industry expansion.