Nvidia CEO Jensen Huang says he uses AI chatbots like OpenAI’s ChatGPT or Google’s Gemini to write his first drafts for him.

Despite the negative financial impact, Nvidia praised DeepSeek’s breakthrough. “DeepSeek is an excellent A.I. advancement and a perfect example of test time scaling,” a company spokesperson told Observer in a statement.

Google’s custom TPUs give it an edge over Nvidia. See why GOOG stock may outperform as it leads AI hardware innovation in a competitive big tech landscape.

President Donald Trump is meeting Friday with Nvidia CEO Jensen Huang, whose company designs and supplies the advanced computer chips that play an integral role in developing artificial intelligence.

In what marks the largest single-day drop in stock market history, Nvidia's valuation has been hit by China's answer to ChatGPT.

Mostly known only in gaming and crypto circles a few years ago, Nvidia burst into the zeitgeist after seeing its sales surge because customers wanted its chips to train their chatbots and other artificial intelligence products.

Then there is the hype question. Since Chat GPT set off the AI gold rush in late 2022, Nvidia has been the ultimate “picks and shovel” play. But like investment in the early days of the internet, the AI boom has so far been based more on the belief that it will change everything than hard evidence that it can generate returns.

DeepSeek, the new player on the scene, is a Chinese company that has been making huge waves in AI development. Its powerful technology could change things such as healthcare, finance – and even the way we interact with the internet. Investors are excited because they see DeepSeek as a potential leader in shaping the next generation of AI tools.

Nvidia’s Blackwell chip – the world’s most powerful AI chip to date – costs around US$40,000 per unit, and AI companies often need tens of thousands of them. But up to now, AI companies haven’t really struggled to attract the necessary investment, even if the sums are huge. DeepSeek might change all this.

MarketWatch checked this claim and found that 61 out of 67 analysts rated Nvidia as a buy as of the morning of Jan. 31. Six analysts, including one from Deutsche Bank, gave the stock a hold rating. None gave it a sell rating.