This is a most excellent place for technology news and articles.
Bizarre story. China building better LLMs and LLMs being cheaper to train does not mean that nVidia will sell less GPUs when people like Elon Musk and Donald Trump can't shut up about how important "AI" is.
I'm all for the collapse of the AI bubble, though. It's cool and all that all the bankers know IT terms now, but the massive influx of money towards LLMs and the datacenters that run them has not been healthy to the industry or the broader economy.
It literally defeats NVIDIA's entire business model of "I shit golden eggs and I'm the only one that does and I can charge any price I want for them because you need my golden eggs"
Turns out no one actually even needs a golden egg anyway.
And... same goes for OpenAI, who were already losing money on every subscription. Now they've lost the ability to charge a premium for their service (anyone can train a GPT4 equivalent model cheaply, or use DeepSeek's existing open models) and subscription prices will need to come down, so they'll be losing money even faster
Well, you still need the right kind of hardware to run it, and my money has been on AMD to deliver the solutions for that. Nvidia has gone full-blown stupid on the shit they are selling, and AMD is all about cost and power efficiency, plus they saw the writing on the wall for Nvidia a long time ago and started down the path for FPGA, which I think will ultimately be the same choice for running this stuff.
So, I get that the hardware is needed for training the models and that's why the stock price fell. But it's also required to run the models, and this news is only going to increase the supply of AI services. It seems to me that this isn't a big threat to the companies that sell AI hardware.
It's fun seeing these companies take a hit and the bubble deflate, but long term won't this just make AI a more alluring form of enshittification to a wider audience?
