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Stocks for Nvidia and Oracle have rebounded Tuesday after taking a tumble following the release of a new AI model from a Chinese startup.
By: Brad Randall, Broadband Communities
Nvidia stocks continued to rebound Tuesday after suffering a 17 percent plunge on Monday.
According to published CNBC reports, Nvidia’s losses on Monday represented “a market cap loss of close to $600 billion, the biggest drop ever for a U.S. company.”
On Tuesday, Nvidia’s stock was rebounding, however, and was up 8 percent by the time of publication.
Nvidia’s stock market plunge on Monday came after the launch of new AI models from DeepSeek, a Chinese startup.
As Reuters reported on Monday, DeepSeek has claimed that their V3 AI model required under $6 million in computing power from Nvidia H800 chips.
DeepSeek’s model overtakes ChatGPT in app store
The model also overtook ChatGPT as the top-rated free app available through Apple in the U.S., according to the Reuters report.
Oracle stocks, which also took a hit on Monday, have been making gains on Tuesday.
According to Forbes, the co-founder of Oracle’s net worth temporarily plunged over $27 billion as a result of Monday’s losses.
“DeepSeek-V3 achieves a significant breakthrough in inference speed over previous models,” the application’s website read on Tuesday. “It tops the leaderboard among open-source models and rivals the most advanced closed-source models globally.”
While the release of DeepSeek’s AI Assistant has led to concerns about a gap between Chinese and American innovation regarding AI, a recent piece published on Fierce Network suggests that recent developments will only further fuel growth in the AI sector.
The rapidly changing developments come only days after the leaders of three tech companies joined President Donald Trump in the White House this week as he promoted a new joint venture called Stargate.
The joint venture, which includes Oracle, OpenAI, and SoftBank, plans to invest “$500 billion at least in AI infrastructure in the United States,” Trump said last week.
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