DeepSeek's January 2025 release of its R1 reasoning model set off immediate investor concern that cheaper alternatives could blunt demand for high-end Nvidia hardware, prompting Susan Zhang to flag the resulting one-day erasure of roughly $600 billion in Nvidia market value and Will Brown to counter with the chipmaker's much longer growth trajectory.
@willccbb > how few people it shook awake
sir, it came after all the purse strings...
@suchenzang surprised how few people it shook awake tbh. lotta gems in playing forward that "oh everyone's just iterating on the same thing and burning compute on scaling skill issues and progress is turning everything into an RL environment and distilling into the next big pretrain run"
Nvidia shares dropped 17 percent on the news, with the broader Nasdaq also sliding as traders weighed whether lower-cost Chinese models trained on export-restricted chips might slow future hardware purchases.
Even after the January dip, Nvidia posted more than a 1,000 percent gain across five years and reached a market cap above $5 trillion, leaving open how durable any lasting demand shift will prove.
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@suchenzang one rounding error among many
@willccbb > how few people it shook awake
sir, it came after all the purse strings...
@willccbb aye, does say a lot when "largest single-day drop" in 2025 is now... that
@suchenzang one rounding error among many