😱 NVIDIA loses $600B in 1 day

Welcome, AI enthusiasts

Nvidia just took a record-breaking stock hit as investors rethink the AI boom. DeepSeek is making waves with a new image model that could rival OpenAI’s best. And OpenAI is bringing ChatGPT to government agencies, moving AI further into public services. Let’s dive in!

In today’s insights:

• Nvidia's stock takes a record hit

• Viral DeepSeek launches new image model

• OpenAI brings ChatGPT to government agencies

Read time: 4 minutes

🗞️ LATEST DEVELOPMENTS

NVIDIA
📉 Nvidia's stock takes a record hit

Evolving AI: Nvidia lost nearly $600 billion in market value after investors reacted to rising competition from Chinese AI lab DeepSeek.

Key Points:

• Nvidia’s stock dropped 17%, the biggest one-day loss in U.S. history.

• DeepSeek’s AI advancements raised concerns about GPU demand.

• Data center companies relying on Nvidia chips, like Dell and Oracle, saw big losses.

Details:

Nvidia’s stock took a massive hit, dropping 17% and wiping out nearly $600 billion in value. This is the largest one-day loss ever for a U.S. company. The fall came after concerns that DeepSeek, a Chinese AI lab, is making progress with its own AI models. The company built a strong AI system using Nvidia’s lower-power H800 chips, raising doubts about future demand for Nvidia’s high-end GPUs.

The stock drop also hit other companies tied to Nvidia. Dell, Oracle, and Super Micro Computer all fell more than 8%. Some investors worry that AI firms will start using alternative chips, making Nvidia less essential. Others believe demand for AI processing power will keep growing, despite recent uncertainty. Nvidia’s stock had already risen 171% in 2024, so some see this as a natural correction.

Why It Matters:

This shows how fast AI competition is shifting. New players like DeepSeek are proving that high-performance AI doesn’t always need Nvidia’s most expensive chips. If this trend continues, tech companies may rethink how they build AI systems. For Nvidia, the challenge is staying ahead in a changing market.

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DEEPSEEK
📸 Viral DeepSeek launches new image model

Evolving AI: DeepSeek has launched Janus-Pro, a new set of AI models designed to create and analyze images. The company says they perform better than OpenAI’s DALL-E 3.

Key Points:

• Janus-Pro models range from 1 billion to 7 billion parameters and are free to use under an MIT license.

• The largest model beats DALL-E 3 in key benchmarks like GenEval and DPG-Bench.

• DeepSeek’s success is raising questions about U.S. leadership in AI and future demand for expensive AI chips.

Details:

DeepSeek has introduced Janus-Pro, a family of AI models that can both generate and analyze images. The models, available on Hugging Face, range from 1 billion to 7 billion parameters and are open-source under an MIT license. DeepSeek claims that its largest model, Janus-Pro-7B, outperforms DALL-E 3 in key AI tests.

These models can handle a range of image sizes while competing with many AI models designed for specific tasks. DeepSeek says Janus-Pro is a flexible system with strong potential for future AI development.

DeepSeek has been gaining attention after its chatbot topped the Apple App Store charts. Analysts are now questioning if U.S. firms will maintain their AI lead and if demand for high-end AI chips will stay strong.

Why It Matters:

Open source AI is becoming more powerful, and smaller models are now competing with bigger, more expensive ones, that can also be run locally.

OPENAI
🏛️ OpenAI brings ChatGPT to government agencies

Evolving AI: OpenAI has launched ChatGPT Gov, a version of its AI assistant made for U.S. government use.

Key Points:

• ChatGPT Gov runs on Microsoft’s Azure Cloud and Azure Government Cloud.

• It has the same features as ChatGPT Enterprise, including GPT-4o access.

• OpenAI is working on FedRAMP approval to expand its government services.

Details:

OpenAI is offering ChatGPT Gov to federal, state, and local agencies. It works on Microsoft’s secure cloud platforms, meeting strict privacy and security rules. This version has the same advanced tools as ChatGPT Enterprise, including GPT-4o.

OpenAI is also working to get FedRAMP approval, which would allow it to be used in more government areas. Over 90,000 government employees across 3,500 agencies already use ChatGPT, including teams at the Air Force Research Laboratory and Los Alamos National Laboratory.

Why It Matters:

Government agencies are using AI to improve research, communication, and decision-making. A secure version of ChatGPT makes AI more useful in public service and increases its adoption.

 👀 Click on the image you think is real

🔎 Quartz has been quietly publishing AI-generated news articles.

📡 Open-R1: a fully open reproduction of DeepSeek-R1.

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⚠️ DeepSeek hit with ‘large-scale’ cyber-attack after AI chatbot tops app stores.

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