• The company lost about $400 billion in a day — this is the largest drop in its history; • It’s all because of the sensational Chinese neural network DeepSeek, which surpasses ChatGPT by far; • It turned out that the Chinese AI is not only smarter, faster, and simpler than Western competitors but, most importantly, hundreds of timescheaper; • While OpenAI, Meta, and Google are pouring billions of dollars into training their neural networks and purchasing massive amounts of powerful chips, the Chinese spent just ❗️$6 million on DeepSeek; • It became clear that many powerful chips for training neural networks are simply not needed, and demand for them may drop; • This hit NVIDIA — after all, the company was actively profiting from the AI boom, selling hundreds of thousands of graphics cards; • Now, there’s real panic in Silicon Valley — investors are withdrawing from AI projects and dumping stocks of graphics card manufacturers, and NVIDIA itself is facing grim prospects.